The monthly revenue collection has topped that of a year ago for the third consecutive month.
The reasons for this improved performance in collection vary from month to month, but one common denominator is the Aug. 1 change in the sales tax rate from 5 percent to 6.25 percent.
December 2009 revenues totaled $1.885 billion, up $22 million or 1.2 percent from December 2008, according to the revenue numbers DOR released yesterday. Similarly, November revenues and October revenues topped collections for the same months in 2008.
The first three months of FY10 (July, August and September) saw monthly collections fall short of those from a year ago, which is one reason why the FY10 revenue estimate was adjusted downward by $600 million in mid-October to $18.279 billion.
However, based on the past three months performance both in terms of surpassing last year's monthly collections and in terms of beating revised benchmarks, the FY10 revenue estimate was revised yesterday to $18.460 billion, an increase of $181 million.
Sales tax revenue for December 2009 was $377 million, up $71 million from a year ago, an increase of 23.4 percent and $14 million over benchmark. Had there been no sales tax rate increase, the collection would have been 3.9 percent less than a year ago. Year-to-date, sales tax collection is $2.231 billion, up $227 million or 11.3 percent. Again, had there been no sales tax rate increase, the collection for the first six months of FY10 would have been 7.0 percent less than a year ago, which is in line with other states.
Click here for a closer look at the numbers behind the December figures.
And for overviews of how states throughout the nation are dealing with their fiscal issues, click here and here Massachusetts continues to face an estimated $3 billion budget gap in FY11, which begins July 1, 2010. Governor Patrick will release his proposed FY11 budget later this month.
DOR Joins Forces with Others to Fight Tax Fraud posted on Nov 25
The Massachusetts Department of Revenue (DOR) continues to be serious about combating tax and identity fraud. Not only have we continuously redoubled our anti-fraud efforts, we have in the past welcomed every opportunity to join forces with others to fight the ever-growing issues of identity …Continue Reading DOR Joins Forces with Others to Fight Tax Fraud
Tax Practitioners Report in on Sneak Preview of MassTaxConnect posted on Nov 24
On November 30th, the Massachusetts Department of Revenue (DOR) will release MassTaxConnect, the next generation tax system, to business and corporate taxpayers. The new filing system will replace WebFile for Business. In anticipation of the launch, DOR invited tax practitioners to preview MassTaxConnect and weigh …Continue Reading Tax Practitioners Report in on Sneak Preview of MassTaxConnect
MassTaxConnect: A Big Win for Small Businesses in the Commonwealth posted on Nov 23
Small businesses are the lifeblood of a healthy economy. That’s true nationally, and that’s certainly true here in Massachusetts. With the advent of DOR’s newest electronic filing system, MassTaxConnect, life is about to get a whole lot easier for many companies across the Commonwealth. Currently, …Continue Reading MassTaxConnect: A Big Win for Small Businesses in the Commonwealth