DOR today released the September revenue report, which showed overall tax collections coming in $243 million below the projected collection or what is commonly referred to as the benchmark collection.
For the year-to-date, state tax collection is $212 million below benchmark. As a result, the Governor today announced that his cabinet would continue to plan for budget reductions, while, at the same time, outside economic forecasters will take a fresh look at state and national revenue trends with an eye toward revising downward by October 15 the current revenue estimate for this fiscal year of $18.879 billion.
Once the estimate is revised, budget cuts will be announced the follow week, no later than October 22.
During the fiscal year that ended June 30, the state knocked down its revenue estimate four different times. By the end of the year, the actual collection was $3.2 billion less than had been projected on July 1, 2008. So this trend is continuing without abatement.
Massachusetts is hardly alone in dealing with the impact of this severe economic downturn on state revenues. Already this fiscal year, half the states have lowered their original revenue estimates, and 48 states are reporting revenues falling below projections.
Economists are starting to see signs of economic revival in the private sector, but there is historically a lag between what happens in the private economy and what is happening to tax revenues. For instance, by December 2007 it was apparent to many observers that the national economy was starting to fail, but the decline in revenues did not materialize in Massachusetts until a year ago, in September 2008.
DOR + Social Media — #CheckUsOut posted on Jul 28
State tax administration might not deliver such seismic news events as LeBron’s eagerly-awaited announcement of his return to his old Cleveland team, but knowing what’s going on at any given moment in the tax world could save you some time and effort, and maybe …Continue Reading DOR + Social Media — #CheckUsOut
Commute to work on the T, Commuter Rail or Turnpike? You may be eligible for a Massachusetts Commuter Deduction on your tax return! posted on Jul 16
The Commuter Deduction was enacted by the Legislature to cover specific commuter expenses. To help understand the deduction, the Department of Revenue’s DOR University has released an e-learning module explaining what qualifies for a deduction, real-life examples and how you can claim your commuter deduction …Continue Reading Commute to work on the T, Commuter Rail or Turnpike? You may be eligible for a Massachusetts Commuter Deduction on your tax return!
DOR Offers FREE E-Learning Course on Fraternal Organization Tax Responsibilities posted on Jul 9
Help get the word out! The Department of Revenue’s online DOR University has recently developed a new free e-learning course on the tax responsibilities of fraternal organizations. Fraternal organizations are considered a type of Chapter 180 Corporation, which are formed for charitable or other purposes. …Continue Reading DOR Offers FREE E-Learning Course on Fraternal Organization Tax Responsibilities