Press Release: 2024-11-06

October Revenue Collections Total $2.685 Billion

 



Monthly collections up $124 million or 4.9% vs. October 2023 actual; $86 million below benchmark



FOR IMMEDIATE RELEASE:



11/05/2024



MEDIA CONTACT 



Nathalie Dailida



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Call Nathalie Dailida at (617) 626-2175



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Email Nathalie Dailida at dailidan@dor.state.ma.us



(BOSTON, MA) — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for October totaled $2.685 billion, $124 million or 4.9% more than actual collections in October 2023, but $86 million or 3.1% below benchmark.1



FY2025 year-to-date collections totaled approximately $12.512 billion, which is $667 million or 5.6% more than actual collections in the same period of FY2024, but $129 million or 1.0% below the year-to-date benchmark.



DOR estimates that roughly $54 million in FY2025 year-to-date collections reflects a temporary, one-time event in sales and use tax, without which FY2025 year-to-date revenue would be about $613 million or 5.2% more than actual collections in the same period in FY2024, but $183 million below the year-to-date benchmark.



“October revenue included increases relative to October 2023 collections in withholding, non-withheld income tax, and corporate and business tax,” said Commissioner Snyder. “These increases were partially offset by a decrease in sales and use 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 also likely due, in part, to an increase in surtax revenue. The decrease in sales and use tax is mostly driven by decreases in regular sales tax and motor vehicle sales tax.” 



In general, October is among the lower months for revenue collection, because neither individual nor business taxpayers make significant estimated payments during the month. Historically, roughly 6.5% of annual revenue, on average, has been received during October.



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



Details:




  • Income tax collections for October totaled $1.596 billion, $16 million or 1.0% below benchmark, but $140 million or 9.6% more than October 2023.

  • Withholding tax collections for October totaled $1.411 billion, $15 million or 1.1% above benchmark, and $84 million or 6.4% more than October 2023.

  • Income tax estimated payments for October totaled $86 million, $9 million or 11.7% above benchmark, and $7 million or 9.5% more than October 2023.

  • Income tax returns and bills for October totaled $278 million, $34 million or 11.0% below benchmark, but $47 million or 20.4% more than October 2023.

  • Income tax cash refunds for October totaled $178 million in outflows, $6 million or 3.7% above benchmark, but $1 million or 0.8% less than October 2023.

  • Sales and use tax collections for October totaled $813 million, $37 million or 4.3% below benchmark, and $25 million or 3.0% less than October 2023.

  • Corporate and business tax collections for October totaled $67 million, $30 million or 30.5% below benchmark, but $8 million or 12.6% more than October 2023.

  • “All other” tax collections for October totaled $208 million, $4 million or 1.7% below benchmark, but $2 million or 0.9% more than October 2023.



October 2024 Tax Collections Summary (in $ millions) Preliminary as of November 5, 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.