Post Content

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.

Written By:

Recent Posts

MassTaxConnect powers into new year with more speed and precision posted on Dec 21

MassTaxConnect powers into new year with more speed and precision

You know where you’re going. With a few new add-ons, we made it easier to get there. Same road, better ride This January, we hope your 2021 gets off to a smooth start with our enhanced, high performance tax platform. Changes to MassTaxConnect are subtle,   …Continue Reading MassTaxConnect powers into new year with more speed and precision

It’s a new holiday season but some things haven’t changed posted on Dec 11

Scams are rampant but you can protect yourself We are not alone in trying to keep you safe. The IRS and other states are working hard to come up with ways to stop the scammers who never take a holiday. We’ve pulled some of the   …Continue Reading It’s a new holiday season but some things haven’t changed

On the road (virtually) with DOR posted on Nov 9

Every fall and winter, we hit the road to talk with community members and tax professionals about the upcoming tax filing season and other need-to-know DOR updates. Of course, like many things this year, we had to rethink what “on the road” would look like   …Continue Reading On the road (virtually) with DOR