(BOSTON, MA) — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for January totaled $3.347 billion, which is $392 million or 13.3% more than the actual collections in January 2021, and $429 million or 14.7% more than benchmark.1
FY2021 year-to-date collections totaled approximately $17.653 billion, which is $764 million or 4.5% more than collections in the same period of FY2020.
“January revenue included increases in withholding, income estimated payments, regular sales tax, and “all other tax”, as well as a decrease in meals tax,” said Commissioner Snyder. “The increase in withholding is likely related to unemployment insurance benefits and bonus related payments, and income estimated payments were strong likely because of 2020 investment-related income gains. The increase in “all other tax” is primarily attributable to estate taxes, a category that tends to fluctuate. DOR will continue to monitor revenue collections closely in the coming months.”
In general, January is a significant month for revenues because many personal income taxpayers are required to make quarterly estimated payments. January generally produces about 10.2% of annual revenue, making it the fourth largest revenue month of the year.
Because January revenues reflected the impact of filing and payment due date extensions for regular sales, meals, and room occupancy taxes for certain businesses(2)(3) as well as the impact of COVID-19, historical comparisons of this January’s results to prior years should be used with caution.
Preliminary January Revenue Collections
- Income tax collections for January were $2.313 billion, $235 million or 11.3% above benchmark, and $312 million or 15.6% more than January 2020.
- Withholding tax collections for January totaled $1.361 billion, $152 million or 12.5% above benchmark, and $101 million or 8.0% more than January 2020.
- Income tax estimated payments totaled $903 million for January, $87 million or 10.7% more than benchmark, and $202 million or 28.8% more than January 2020.
- Income returns and bills totaled $64 million for January, $4 million or 6.3% less than benchmark, but $12 million or 22.2% more than January 2020.
- Income cash refunds in January totaled $15 million in outflows, $1 million or 3.4% less than benchmark, but $2 million or 16.9% more than January 2020.
- Sales and use tax collections for January totaled $693 million, $41 million or 6.4% above benchmark, and $20 million or 2.9% more than January 2020.
- Meals tax collections, which is a sub-set of sales and use tax, totaled $64 million, $4 million or 6.6% above benchmark, but $38 million or 37.3% less than January 2020.
- Corporate and business tax collections for the month totaled $59 million, $1 million or 1.6% above benchmark, but $7 million or 10.9% less than January 2020.
- Other tax collections for January totaled $281 million, $151 million or 116.3% above benchmark, and $67 million or 31.2% more than January 2020.
1The original benchmark for fiscal year 2021 is $28.390 billion. On January 15, 2021, as part of the fiscal year 2022 Consensus Revenue process, the fiscal year 2021 figure was adjusted to $29.090 billion. The adjustment is reflected beginning with this January report.
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february 03, 2021