Massachusetts revenue collections again beat expectations in May as state rakes in billions

Chris Lisinski

The great occasions proceed to roll for Massachusetts tax collectors and for the lawmakers who stay on observe to be gifted an enormous election-year surplus.

Baker administration officers introduced Friday that the Division of Income hauled in $2.478 billion in Could, $186 million or 8 p.c greater than the revised month-to-month benchmark after accounting for a brand new elective pass-through entity excise that affected collections. Could 2022 revenues dropped in comparison with final 12 months, when DOR took in simply greater than $4 billion, however officers stated that decline is essentially due to one-time modifications within the annual earnings tax submitting timeline made in 2021.

“The lower in Could 2022 income compared to Could 2021 is primarily because of an anticipated decline in earnings tax return funds, which is essentially attributable to the extension of final 12 months’s earnings tax submitting and cost deadline from April 15, 2021, to Could 17, 2021,” DOR Commissioner Geoffrey Snyder stated. “The lower in earnings tax return funds was partially offset by will increase in different main tax classes together with withholding, gross sales and use tax, and ‘all different’ tax.”

Massachusetts up to now has collected $36.969 billion in tax income by way of the primary 11 months of fiscal 2022. After adjusting for the brand new excise, that pot stands $4.726 billion or 15.5 p.c greater than the identical interval in fiscal 12 months 2021 in addition to $1.965 billion or 5.9 p.c greater than the revised year-to-date benchmark. The Bay State would solely want to herald rather less than $700 million in taxes in June to surpass the third and newest benchmark improve of $37.666 billion, which the Baker administration set in mid-Could after a string of way-above-projected month-to-month collections.

Baker has been pushing for months to enact $700 million in tax reduction, together with reforms to the capital beneficial properties and property tax in addition to breaks for renters, seniors and low-income residents. Democrats who management the Home and Senate haven’t embraced Baker’s push, and whereas they are saying they intend to advance a tax reduction bundle, they’ve but to stipulate any particular plans.