March Revenue Collections Total $4.065 Billion

(Boston, MA) — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for March totaled $4.065 billion, $182 million or 4.7% more than actual collections in March 2023, and $129 million or 3.3% above benchmark.¹

FY2024 year-to-date collections totaled approximately $27.531 billion, which is $4 million or 0.01% less than collections in the same period of FY2023, and $145 million or 0.5% less than the year-to-date benchmark.

"March collections increased in income tax withholding in comparison to March 2023,” said Commissioner Snyder. “The increase in withholding was partially offset by decreases in non-withheld income tax, sales and use tax, and ‘all other’ tax. The increase in withholding was due, in part, to current labor market conditions. The decrease in non-withheld income tax was driven by an unfavorable increase in income tax refunds and a decrease in income tax returns and bills. The decrease in sales tax was mainly due to typical timing factors in collections. The decrease in ‘all other’ tax is mostly attributable to a decrease in estate tax, a category that tends to fluctuate.”

Historically, March is a mid-size month for revenue collections, ranking sixth of the 12 months on average in the last 10 years. Many corporate and business taxpayers are required to make estimated payments during the month. The tax filing season is underway, and March is typically a significant month for refund payments (outflows), which reduce total net revenue.

Details:

Income tax collections for March totaled $1.991 billion, $133 million or 7.2% above benchmark, and $232 million or 13.2% more than March 2023.
Withholding tax collections for March totaled $1.946 billion, $207 million or 11.9% above benchmark, and $293 million or 17.7% more than March 2023.
Income tax estimated payments for March totaled $96 million, $6 million or 5.6% below benchmark, and $0.2 million or 0.2% less than March 2023.
Income tax returns and bills for March totaled $492 million, $69 million or 12.2% below benchmark, and $21 million or 4.0% less than March 2023.
Income tax cash refunds for March totaled $543 million in outflows, $1 million or 0.2% below benchmark, but $39 million or 7.8% more than March 2023.
Sales and use tax collections for March totaled $664 million, $5 million or 0.8% below benchmark, and $26 million or 3.8% less than March 2023.
Corporate and business tax collections for March totaled $1.235 billion, $2 million or 0.1% below benchmark, and $5 million or 0.4% less than March 2023.
“All other” tax collections for March totaled $175 million, $3 million or 1.9% above benchmark, but $19 million or 10.0% less than March 2023.

March 2024 Tax Collections Summary (in $ millions) Preliminary as of April 03, 2024

1

On January 12, 2024, the Secretary of Administration and Finance announced a revised tax revenue estimate of $39.834 billion for FY2024, which includes $1 billion for the 4% income surtax and a $576.8 million reduction in revenue resulting from the Tax Relief Bill. The revised FY2024 revenue benchmark represents July 2023 through December 2023 actual collections and forecasted collections for the months of January 2024 through June 2024.

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