The Department of Revenue yesterday released September revenue figures showing a monthly collection that was $178 million more than that of a year ago, and was $141 million above the monthly benchmark.
For the first quarter of FY12, revenue is now up $310 million from a year ago, and is $190 million above benchmark.
The tax collection summary that accompanies the September press release shows that virtually of the revenue growth came from income tax collections, and, in particular, growth in income withholding ($69 million) and in cash estimated payments ($66 million), while the amount of refunds paid out ($20 million) was less than forecast.
The release notes that some of the growth in withholding may be timing related; that is, payments due in October may have come in early, at the end of September.
The growth in cash estimated payments leaves still to be determined whether those payments will reflect capital gains taken this year, or if they are coming from taxpayers who have to make estimated payments this year because they did so last year. If those payments do not reflect current gains or dividends, at least some of this revenue will eventually be refunded.
Several one-time tax settlements totaling $71 million bumped up corporate tax collections to $14 million above benchmark.
And the sales tax collection, which is a measure of consumer spending and confidence, was pretty much flat for the month. Regular sales tax collection was equal to that of a year ago; small growth came in meals tax ($3 million more than a year ago) and sales tax on motor vehicles ($4 million more than a year ago).
All in all a pretty good month that keeps the Commonwealth on track later this year for a possible December certification of a .05 percent reduction in the income tax rate (from 5.30 to 5.25 percent), but a month that also had some trends that bear watching.
Collaborative Insight: Follow up from our conversation with Bulk Filers posted on Oct 7
Last week we held a conference call for business taxpayers and individuals who have historically used the Massachusetts Department of Revenue’s (“DOR”) bulk filing system for filing taxes. Specifically, DOR experts spoke about MassTaxConnect, DOR’s state-of-the-art tax system that will replace WebFile for Business for …Continue Reading Collaborative Insight: Follow up from our conversation with Bulk Filers
Take a look under the hood: MassTaxConnect, DOR’s newest e-filing system posted on Sep 17
As you’ve probably heard, DOR has a new electronic filing system—MassTaxConnect—coming to business taxpayers November 30th, 2015. We’ve blogged about MassTaxConnect before, including about the top 10 benefits business taxpayers can expect from the system as well as “What’s New” with the system compared to …Continue Reading Take a look under the hood: MassTaxConnect, DOR’s newest e-filing system
Child Support Enforcement mentioned in national publication posted on Sep 4
Erica Gaynor, Workflow Implementation Manager with the Child Support Enforcement (CSE) Division was published in the August edition of the U.S. Dept. of Health and Human Services’ Administration for Children and Families’ newsletter “The Child Support Report”. Gaynor and CSE’s work with predictive analytics is garnering national …Continue Reading Child Support Enforcement mentioned in national publication