The Department of Revenue today released revenue numbers for May. The monthly collection of $1.506 billion was $56 million below benchmark and $68 million less than a year ago.
This was the kind of month that proves the old adage, what goes up must come down. Given that April revenue was $587 million over benchmark, it was hardly shocking to see May revenue take a bit of a tumble.
As Commissioner Navjeet K. Bal pointed out, return processing in April was exceptionally speedy, leaving fewer envelopes to open and fewer checks to deposit in May. In addition, it turned out that some of the withholding income that DOR expected to collect in May came in during April.
If you look at filing season as a two-month proposition covering April and May, which is good way to look at it since those are the months in which income tax collections are received and counted, the Commonwealth finished more than $500 million above the combined monthly benchmarks.
Year to date, the Commonwealth has collected $1.859 billion more than a year ago. That is a clear sign of economic — and tax collection — recovery.
Other states, while not seeing increases as dramatic as that seen in Massachusetts, are recording a rise in revenue. The National Governors Association reported this week that a revenue recovery is underway, but that most states still have a ways to go to reach the level of revenue collected in 2008.
That holds true for Massachusetts as well, since this year's collection (currently $18.366 billion) will fall short of the FT2008 collection of $20.888 billion with just one month to go before the end of FY11. June is historically a large month for collections due to receipt of estimated payments, but it would have to be a monster for FY11to top the FY2008 collection.
DOR Ruling Favorable in First Circuit Judgment posted on Mar 17
The United States Court of Appeals for the First Circuit issued judgments in the Department of Revenue’s (DOR) favor last month, finding that taxpayers in Bankruptcy proceedings cannot discharge late filed tax returns. The court consolidated two similar cases brought before them involving a total …Continue Reading DOR Ruling Favorable in First Circuit Judgment
Five Reasons to E-File with DOR’s WebFile for Income posted on Feb 24
With Tax season well under way; DOR would like to help you make the decision to E-File with WebFile for Income this year. We know, “I’m not computer savvy” or “What about the safety of my information” has been said many times before, but we’d …Continue Reading Five Reasons to E-File with DOR’s WebFile for Income
Class in Session at DOR University posted on Jan 20
Looking to educate yourself this tax season? Want to learn more about tax options, or DOR-related issues? All this can be achieved at DOR University, the Department of Revenue’s free online e-learning module. DOR University, created to offer free tax education to the public and …Continue Reading Class in Session at DOR University