Benchmark Breakthrough: Massachusetts Fiscal Performance Soars in March 2024
Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder has reported that preliminary revenue collections for March 2024 surpassed expectations, reflecting a positive trend in the state’s fiscal performance.
According to Commissioner Snyder, March revenue collections totaled $4.065 billion, marking an increase of $182 million or 4.7% compared to March 2023. Additionally, collections exceeded the benchmark by $129 million or 3.3%.
Year-to-date collections for Fiscal Year (FY) 2024 amounted to approximately $27.531 billion, a slight decrease of $4 million or 0.01% from the same period in FY2023. Despite this, collections were $145 million or 0.5% below the year-to-date benchmark.
Commissioner Snyder attributed the increase in March collections primarily to higher income tax withholding, driven by current labor market conditions. However, decreases were observed in non-withheld income tax, sales and use tax, and other tax categories.
The breakdown of March collections is as follows:
- Income tax collections: $1.991 billion, surpassing the benchmark by $133 million and March 2023 by $232 million.
- Withholding tax collections: $1.946 billion, exceeding the benchmark by $207 million and March 2023 by $293 million.
- Income tax estimated payments: $96 million, slightly below benchmark but comparable to March 2023.
- Income tax returns and bills: $492 million, below benchmark and March 2023.
- Income tax cash refunds: $543 million, slightly below benchmark but higher than March 2023.
- Sales and use tax collections: $664 million, slightly below benchmark and March 2023.
- Corporate and business tax collections: $1.235 billion, slightly below benchmark and March 2023.
- “All other” tax collections: $175 million, slightly above benchmark but below March 2023.
Commissioner Snyder noted that March typically ranks as a mid-size month for revenue collections, with the tax filing season in full swing. Refund payments during this period contribute to total net revenue outflows.
The revised tax revenue estimate for FY2024, announced on January 12, 2024, stands at $39.834 billion, reflecting adjustments including the 4% income surtax and reductions resulting from the Tax Relief Bill.
The positive revenue figures for March 2024 indicate a resilient fiscal outlook for Massachusetts, with continued monitoring and adjustments anticipated throughout the fiscal year.