The Department of Revenue released its November revenue report yesterday showing an increased monthly collection of 2.7 percent from November 2008 and an above-benchmark monthly performance of $12 million. So far so good. But keep in mind that year-to-date tax collections are $369 million or 5.1 percent less than a year ago. So we're not of the woods by a long shot.
The quick takeaway from the November numbers is that the FY10 revenue estimate, revised downward by $600 million on October 15th to $18.279 billion, has held up during the months of October and November. How so?
Well, in those two months combined collections have run a modest $37 million above the revised benchmark. In reality, that's pretty close to projections and not much of a cushion with the big revenue months of December and January coming up.
On the other hand, coming close to benchmark, with a little on the plus side, may mean that after five successive downward revenue revisions going back to FY09 (the first coming in October 2008) the revenue forecasters may have accurately plumbed the bottom of the revenue plunge.
Given what we've seen the past year, there is some comfort in thinking that revenues have hit bottom and will start to slowly recover. But we won't know for sure until early in February, when the January numbers can be tallied with December to see how things stand going into prime tax collection season.
Also, keep in mind that even if revenues do start to tick upward, the budget gap for FY11 is still in the neighborhood of $3 billion.
EITC – Helping Low and Moderate Income Families in MA posted on Jan 29
EITC, also known as the Earned Income Tax Credit, has been helping low to moderate income families in Massachusetts and across the country for over 40 years. In recent months, Governor Charlie Baker and members of the Legislature have worked hard to ensure that working …Continue Reading EITC – Helping Low and Moderate Income Families in MA
DOR Homepage gets a facelift posted on Jan 14
Today, DOR unveiled a brand new homepage intended to making it easier for taxpayers to find what they’re looking for when it comes to filing and paying their state taxes. DOR’s communications team used consumer insights and online analytics to better understand how taxpayers use the site, …Continue Reading DOR Homepage gets a facelift
Did You Know Home Heating Oil is Mass Sales Tax Exempt? posted on Jan 14
In preparation for the winter months, we want to remind you that home heating oil is exempt from Massachusetts sales tax. This winter season, DOR wants you to be prepared. Here’s what you need to know when purchasing your home heating oil: Who is exempt …Continue Reading Did You Know Home Heating Oil is Mass Sales Tax Exempt?