Press Release: 2024-10-04

September Revenue Collections Total $4.518 Billion

 



Monthly collections up $331 million or 7.9% vs. September 2023 actual; $29 million below benchmark



FOR IMMEDIATE RELEASE:



10/03/2024



(BOSTON, MA) — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for September totaled $4.518 billion, $331 million or 7.9% more than actual collections in September 2023, but $29 million or 0.6% below benchmark.[1]



FY2025 year-to-date collections totaled approximately $9.826 billion, which is $541 million or 5.8% more than actual collections in the same period of FY2024, but $44 million or 0.4% below the year-to-date benchmark. 



DOR estimates that roughly $54 million of the year-over-year increase in September reflects a temporary, one-time event in sales and use tax, without which September 2024 revenue would be about $277 million or 6.6% more than actual collections in September 2023 and $83 million below benchmark. Without this one-time payment, year-to-date collections would be $98 million below benchmark for FY2025. 



“September revenue included increases relative to September 2023 collections in withholding, non-withheld income tax, and sales and use tax,” said Commissioner Snyder. “These increases were partially offset by decreases in corporate and business tax and ‘all other’ tax. The increase in withholding reflects a likely increase in surtax revenue and current labor market conditions. The increase in non-withholding income tax is primarily driven by the pass-through-entity tax and a likely increase in surtax revenue. The increase in sales and use tax is primarily the result of typical timing factors in collections and a temporary, one-time event. The decrease in ‘all other’ tax is due, in part, to estate tax, a category that tends to fluctuate.” 



In general, September is a significant month for revenues because many individuals and corporations are required to make estimated payments. Historically, roughly 10% of annual revenue, on average, has been received during September. 



Given the brief period covered in the report, September results should not be used as a predictor for the rest of the fiscal year.

 



Details:




  • Income tax collections for September totaled $2.603 billion, $54 million or 2.1% above benchmark, and $269 million or 11.5% more than September 2023.

  • Withholding tax collections for September totaled $1.494 billion, $78 million or 4.9% below benchmark, but $80 million or 5.6% more than September 2023.

  • Income tax estimated payments for September totaled $1.066 billion, $176 million or 19.7% above benchmark, and $200 million or 23.0% more than September 2023.

  • Income tax returns and bills for September totaled $142 million, $44 million or 23.7% below benchmark, and $5 million or 3.7% less than September 2023.

  • Income tax cash refunds for September totaled $98 million in outflows, $0.2 million or 0.2% below benchmark, but $5 million or 5.2% more than September 2023.

  • Sales and use tax collections for September totaled $816 million, $28 million or 3.3% below benchmark, but $111 million or 15.7% more than September 2023.

  • Corporate and business tax collections for September totaled $888 million, $47 million or 5.0% below benchmark, and $22 million or 2.4% less than September 2023.

  • “All other” tax collections for September totaled $211 million, $8 million or 3.6% below benchmark, and $28 million or 11.6% less than September 2023.



###



September 2024 Tax Collections Summary (in $ millions) Preliminary as of October 3, 2024



Footnotes



[1]



FY2025 monthly revenue benchmarks are posted on the DOR website: https://www.mass.gov/lists/dor-year-to-date-and-monthly-tax-collection-benchmark-ranges.