Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder announced that preliminary revenue collec-tions for March totaled $3.061 billion, which is $402 million or 15.1 percent more than the actual collections in March 2020, and $648 million or 26.8 percent more than bench-mark.
FY2021 year-to-date collections totaled approximately $22.588 billion, which is $1.524 billion or 7.2 percent more than collections in the same period of FY2020.
“March revenue included increases in withholding and non-withheld income taxes, corporate and business taxes, “all other tax”, and sales and use taxes.” said Commissioner Snyder. “Although C corporation returns are not due until April 15, some corporate return payments were received in March, resulting in an increase in that category relative to the benchmark and prior year collections. The increase in “all other tax” is primarily attributable to estate taxes, a category that tends to fluctuate. Income tax refunds are be-low benchmark due to the late start of the tax filing season and recent tax law changes, including the extensions of the state and federal individual income tax filing deadlines from April 15 to May 17. However, those tax refunds may catch up as the filing season progresses,” said Commissioner Snyder.
The original benchmark for fiscal year 2021 was $28.390 billion. On Jan. 15, as part of the fiscal year 2022 Consensus Revenue process, the fiscal year 2021 bench-mark was adjusted to $29.090 billion. The adjustment is re-flected in DOR’s revenue releases beginning in January.
Historically, March is a mid-size month for revenue collec-tions, ranking sixth of the twelve months in eight of the last 10 years. Many corporate and business taxpayers are re-quired to make estimated payments during the month. The tax-filing season is underway, and March is typically a signif-icant month for refund payments (outflows), which reduce total net revenue.
Preliminary March Revenue Collections
•Income tax collections for March were $1.260 bil-lion, $178 million or 16.5% above benchmark, and $173 million or 16.0% more than March 2020.
•Withholding tax collections for March totaled $1.482 bil-lion, $91 million or 6.6% above benchmark, and $154 mil-lion or 11.6% more than March 2020.
•Income tax estimated payments totaled $25 million for March, $5 million or 22.1% more than benchmark, and $5 million or 22.6% more than March 2020.
•Income tax returns and bills totaled $152 million for March, $63 million or 71.4% more than benchmark, and $46 million or 43.0% more than March 2020.
•Income tax cash refunds in March totaled $399 million in outflows, $19 million or 4.6% less than benchmark, but $31 million or 8.5% more than March 2020. The decline in refunds relative to the benchmark is due to the late start of this year’s income tax filing season and recent federal tax law changes, including the extension of the individual in-come tax filing deadline from April 15 to May 17.
•Sales and use tax collections for March totaled $562 mil-lion, $95 million or 20.4% above benchmark, and $39 mil-lion or 7.5% more than March 2020.
•Meals tax collections, a sub-set of sales and use tax, to-taled $66 million, $13 million or 23.9% above benchmark, but $2 million or 2.8% less than March 2020.
•Corporate and business tax collections for the month to-taled $1.024 billion, $274 million or 36.5% above bench-mark, and $147 million or 16.8% more than March 2020.
•Other tax collections for March totaled $215 million, $101 million or 87.8% above benchmark, and $42 million or 24.3% more than March 2020.