Boston, MA — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for June 2022 totaled $4.143 billion as of August 4, 2022, which is $470 million or 12.8% more than actual collections in June 2021 and $780 million or 23.2% more than benchmark. [1] June 2022 revenue collections were impacted by the recently enacted elective pass-through entity (PTE) excise. After adjusting for PTE excise, June 2022 collections are $213 million or 5.8% above actual collections in June 2021, and $710 million or 22.3% more than benchmark.

Revenue collections for FY2022 were $41.105 billion, which is $6.982 billion or 20.5% more than collections in FY2021, and $3.438 billion or 9.1% more than the benchmark. After adjusting for PTE excise, FY2022 collections are $4.932 billion or 14.5% more than collections in FY2021 and $2.668 billion or 7.3% more than benchmark.

Since FY21, when sales tax acceleration was implemented, entities subject to sales tax acceleration make estimated payments in June for which returns are due in late July, and only once those returns are filed can DOR assess the split between taxes that are collected on behalf of the state, versus local option taxes that go to municipalities and taxes owed to the convention center fund.

“Fiscal Year 2022 revenue collections reflect unprecedented capital gains tax revenue, the temporary impact of PTE excise payments, current labor market conditions, and strength in retail sales”, said Commissioner Snyder.

In general, June is a significant month for revenues because many individuals and corporations are required to make estimated payments. In most years, the month of June has ranked second (behind only April) in the proportion of annual revenue received during the month.

Details:

Preliminary June Revenue Collections:

• Income tax collections for June totaled $2.055 billion, $353 million or 20.7% above benchmark, and $201 million or 10.8% more than June 2021. After adjusting for PTE excise, income tax collections for June 2022 are $283 million or 18.7% above benchmark, but $56 million or 3.0% less than June 2021.
• Withholding tax collections for June totaled $1.237 billion, $26 million or 2.2% above benchmark, and $37 million or 3.1% more than June 2021.
• Income tax estimated payments for June totaled $807 million, $382 million or 90.1% above benchmark, and $185 million or 29.7% more than June 2021.
• Income tax returns and bills for June totaled $116 million, $17 million or 17.8% above benchmark, and $0.4 million or 0.4% more than June 2021.
• Income tax cash refunds for June totaled $105 million in outflows, $74 million or 237.7% above benchmark, and $21 million or 25.8% more than June 2021.
• Sales and use tax collections for June totaled $811 million, $129 million or 18.9% above benchmark, and $30 million or 3.8% more than June 2021.
• Meals tax collections, a sub-set of sales and use tax, totaled $132 million in June, $38 million or 40.0% above benchmark, and $21 million or 18.4% more than June 2021.
• Corporate and business tax collections for June totaled $1.006 billion, $283 million or 39.1% above benchmark, and $208 million or 26.0% more than June 2021.
• “All other” tax collections for June totaled $271 million, $15 million or 5.8% above benchmark, and $31 million or 13.1% more than June 2021.

Fiscal Year 2022 Revenue Collections

• Income tax totaled $24.337 billion, $2.057 billion or 9.2% above benchmark, and $4.718 billion or 24.0% more than FY2021. After adjusting for PTE excise, income tax collections are $1.286 billion or 6.1% above benchmark, and $2.669 billion or 13.6% more than FY2021.
• Withholding collections totaled $15.915 billion, $52 million or 0.3% above benchmark, and $1.196 billion or 8.1% more than FY2021.
• Estimated payments totaled $4.589 billion, $1.102 billion or 31.6% above benchmark, and $1.647 billion or 56.0% more than FY2021.
• Income tax payments with returns and bills totaled $5.724 billion, $929 million or 19.4% above benchmark, and $2.041 billion or 55.4% more than FY2021.
• Income tax refunds (outflows) totaled $1.891 billion, $26 million or 1.4% above benchmark, and $165 million or 9.5% more than FY2021.
• Sales and use tax collections totaled $8.765 billion, $654 million or 8.1% above benchmark, and $935 million or 11.9% more than FY2021.
• Meals tax collections, a sub-set of sales and use tax, totaled $1.335 billion, $134 million or 11.2% above benchmark, and $388 million or 41.0% more than FY2021.
• Corporate and business tax collections totaled $5.069 billion, $626 million or 14.1% above benchmark, and $948 million or 23.0% more than FY2021.
• “All other” tax collections totaled $2.934 billion, $102 million 3.6% above benchmark, and $380 million or 14.9% more than FY2021.

June 2022 Tax Collections Summary (in $ millions) Preliminary as of August 4, 2022

[1]

With the enactment of the FY2022 budget, monthly revenue benchmarks were developed for the August 2021 through June 2022 period only. In December 2021, monthly benchmarks from December 2021 through June 2022 were further modified to reflect the impact of the recently enacted pass-through entity excise (PTE excise) and the impact of taxation of non-residents. On January 14, 2022, the Secretary of Administration and Finance announced a revised tax revenue estimate of $35.9 billion for FY2022, an increase of $1.5 billion from the prior estimate of $34.4 billion. This revision is based on recent revenue performance and improved economic data. The revised FY2022 benchmark estimate of $35.9 billion represented July 2021 through December 2021 actual collections, adjusted for PTE excise collections, and the then forecasted collections for the months of January 2022 through June 2022. On May 18, 2022, the Secretary of Administration and Finance announced a revised FY2022 tax revenue estimate of $37.7 billion, an increase of $1.7 billion from the prior estimate of $35.9 billion. The full fiscal year benchmark has been adjusted to reflect the revised forecast. However, the benchmarks for May 2022 and June 2022 have not changed.

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