Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for February totaled $1.874 billion, which is $359 million or 23.7% more than the actual collections in February 2020, and $372 million or 24.8% more than benchmark.1
FY2021 year-to-date collections totaled approximately $19.527 billion, which is $1.123 billion or 6.1% more than collections in the same period of FY2020.
“February’s revenue figures were significantly impacted by a timing-related decline in income tax refunds as the electronic system for taxpayers filing 2020 income tax returns opened on February 12, 2021, which is about two weeks later than last year’s start date of January 27th, 2020. These figures should be viewed with caution and as the filing season progresses, we expect income tax refunds to catch up with last year,” said Commissioner Snyder.
February has historically been the smallest net tax collection month of the fiscal year, contributing less than 6% of annual collections. There are no estimated payments due and sales tax collections are relatively low in the post-holiday period. In general, February is also the month in which refunds begin to accumulate as the tax filing season begins.
Preliminary February Revenue Collections
- Income tax collections for February were $1.062 billion, $231 million or 27.7% above benchmark, and $345 million or 48.0% more than February 2020. Due to the late start of this year’s filing season, refund payments are significantly below the benchmark and the prior year.
- Withholding tax collections for February totaled $1.316 billion, $73 million or 5.3% below benchmark, but $100 million or 8.2% more than February 2020.
- Income tax estimated payments totaled $19 million for February, $5 million or 38.9% more than benchmark, and $5 million or 34.7% more than February 2020.
- Income returns and bills totaled $57 million for February, $30 million or 106.7% more than benchmark, and $10 million or 22.0% more than February 2020.
- Income cash refunds in February totaled $331 million in outflows, $269 million or 44.9% less than benchmark, and $229 million or 40.9% less than February 2020. The decline in refunds relative to the benchmark and the prior year is due to the late start of this year’s filing season.
- Sales and use tax collections for February totaled $564 million, $77 million or 15.9% above benchmark, and $21 million or 4.0% more than February 2020.
- Meals tax collections, a sub-set of sales and use tax, totaled $65 million, $13 million or 25.0% above benchmark, but $25 million or 27.7% less than February 2020.
- Corporate and business tax collections for the month totaled $38 million, $12 million or 47.3% above benchmark, and $17 million or 78.7% more than February 2020.
- Other tax collections for February totaled $211 million, $52 million or 32.8% above benchmark, but $24 million or 10.1% less than February 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 the January report.
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March 3, 2021