March Revenue Collections Total $4.065 Billion

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(Boston, Massachusetts) — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder announced today that preliminary revenue collections for March totaled $4.065 billion, $182 million or 4.7% more than actual collections in March 2023, and $129 million or 3.3% above the benchmark.1

Collections so far in fiscal year 2024 totaled approximately $27.531 billion, which is $4 million or 0.01% less than collections in the same period of fiscal year 2023, and $145 million or 0.5% less than the benchmark so far this year.

“March collections increased in income tax withholding compared to March 2023,” Commissioner Snyder said. “The increase in withholding was partially offset by decreases in non-withheld income tax, sales and use tax, and all other taxes. The increase in withholding was due, in part, to current conditions labor market. The decrease in income tax not withheld was due to an unfavorable increase in income tax refunds and a decrease in income tax returns and invoices. The decrease in sales tax was mainly due to the typical timing factors in collections. The decrease in ‘all other’ taxes can be primarily attributed to a decrease in the estate tax, a category that tends to fluctuate.”

Historically, March is a medium-sized month for revenue collection, ranking sixth of the 12 months averaged over the past 10 years. Many corporate and commercial taxpayers are required to make estimated payments during the month. Tax filing season is underway and March is typically a big month for refund payments (outflows), which reduce total net income.

Details:

  • Income tax collection for March totaled $1,991 million, $133 million or 7.2% above the reference, and $232 million or 13.2% more than March 2023.
  • Collection from withholdings at source in March totaled $1,946 million, $207 million or 11.9% above the reference index, and $293 million or 17.7% more than March 2023.
  • Estimated income tax payments for March totaled $96 million, $6 million or 5.6% below the benchmark and $0.2 million or 0.2% below March 2023.
  • March income tax returns and bills totaled $492 million, $69 million or 12.2% below the benchmark and $21 million or 4.0% below March 2023.
  • March income tax cash refunds totaled $543 million in outflows, $1 million or 0.2% below the benchmark but $39 million or 7.8% higher than in March 2023.
  • Sales and use tax collections for March totaled $664 million, $5 million or 0.8% below the baseline and $26 million or 3.8% below March 2023.
  • March corporate and business tax collections totaled $1.235 million, $2 million or 0.1% below the benchmark and $5 million or 0.4% below March 2023.
  • “All other” taxes collected in March totaled $175 million, $3 million or 1.9% above the benchmark, but $19 million or 10.0% less than in March 2023.

Tax Collection Summary for March 2024 (in millions of $) Preliminary as of April 3, 2024

Footnotes

1

On January 12, 2024, the Secretary of Administration and Finance announced a revised tax revenue estimate of $39.834 billion for fiscal year 2024, which includes $1 billion for the 4% income surtax and a reduction of $576, 8 million in revenue resulting from the Tax Relief Bill. The revised revenue benchmark for fiscal year 2024 represents actual collections from July 2023 to December 2023 and projected collections for the months of January 2024 to June 2024.

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