Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder last week announced that preliminary revenue collections for May totaled $4.002 billion, which is $2.264 billion or 130.3 percent more than the actual collections in May 2020, and $2.109 billion or 111.4 percent more than benchmark.
FY2021 year-to-date collections totaled approximately $30.451 billion, which is $5.689 billion or 23.0 percent more than collections in the same period of FY2020, however, historical comparisons should consider the impact of COVID-related tax filing timing changes. Year-to-date collections are also $3.938 billion or 14.9 percent more than the year-to-date benchmark and exceed the full year benchmark by $1.360 billion.
“May revenue included increases in most major categories, particularly personal income tax return payments,” said Commissioner Snyder. “However, historical comparisons to last year and previous years should be viewed with caution due to COVID-related timing changes to the 2020 and 2021 tax filing season as well as responsive measures undertaken to mitigate the impacts of COVID-19.”
Examples of COVID-19 response measures include, but are not limited to:
• The extension of last year’s income tax filing and payment deadline from April 15, 2020, to July 15, 2020.
• The extension of the April 15, 2020 income tax estimated payment installment to July 15, 2020.
• Penalty waivers for certain corporate excise returns and payments due in 2020.
• The extension of this year’s income tax filing and payment deadline from April 15, 2021, to May 17, 2021.
• The extension of the payment deadline for certain regular sales tax, meals tax and room occupancy excise payments.
Preliminary May Revenue Collections
· Income tax collections for May were $3.020 billion, $1.986 billion or 192.1% above benchmark, and $1.897 billion or 169.0% more than May 2020. Due to extensions of filing and payment deadlines in both this year and last year, income tax collections in May 2021 and May 2020 are not comparable.
· Withholding tax collections for May totaled $1.167 billion, $206 million or 21.4% above benchmark, and $46 million or 4.1% more than May 2020.
· Income tax estimated payments totaled $58 million for May, $36 million or 161.4 percent more than benchmark, and $32 million or 127.3 percent more than May 2020.
· Income tax returns and bills totaled $2.141 billion for May, $1.993 billion more than benchmark, and $2.067 billion more than May 2020. Due to extensions of filing and payment deadlines in both this year and last year, income tax returns and bills in May 2021 and those in May 2020 are not comparable.
· Income tax cash refunds in May totaled $345 million in outflows, $248 million or 255.8 percent more than benchmark, and $248 million or 255.1 percent more than May 2020. Due to the late start of this year’s tax filing season and recent tax law changes, including the extension of the income tax filing deadline from April 15 to May 17, income tax cash refunds in May 2021 and those in May 2020 are not comparable.
· Sales and use tax collections for May totaled $689 million, $52 million or 8.2% above benchmark, and $251 million or 57.2 percent more than May 2020.
· Corporate and business tax collections for the month totaled $71 million, $10 million or 12.6 percent below benchmark, and $34 million or 92.7 percent more than May 2020.
Other tax collections for May totaled $222 million, $81 million or 57.6 percent above benchmark, and $82 million or 58.7 percent more than May 2020.