Home People May tax revenues well below last year, still more than expected

May tax revenues well below last year, still more than expected

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May tax revenues fell far short of last year’s takings but still came in millions above what was forecasted.

“Preliminary revenue collections for May 2022 totaled $2.478 billion, which is $1.524 billion or 38.1% less than actual collections in May 2021, but $138 million or 5.9% more than benchmark,” the Department of Revenue said in a release.

The dramatic fall in revenue compared to 2021 comes as a result of last year’s pandemic fueled income tax filing deadline extension, which made May of that year a far larger revenue month than normal.

“The decrease…is primarily due to an expected decline in income tax return payments, which is largely attributable to the extension of last year’s income tax filing and payment deadline from April 15, 2021 to May 17, 2021,” said Commissioner Geoffrey Snyder. “The decrease in income tax return payments was partially offset by increases in other major tax categories including withholding, sales and use tax, and ‘all other’ tax.”

May is generally a middling tax collections month, the department said, ranking seventh of the 12 tax months in seven of the last 10 years.

Because of the late filing deadline, and the implementation of a pass-through entity excise, comparisons made between this May and last should be done carefully, the department said.

Income tax collections represented $1.36 billion of tax revenue, $10 million more than benchmark. Withholding tax collections accounted for $1.28 billion, $27 million above benchmark.

Tax revenue for the year is nearly 8% over benchmark, by $1.96 billion, and $4.72 billion more than last year.

Tax takings estimates for fiscal 2022 have needed to be revised several times since initially expected to be around $34.4 billion. With the month of June remaining in the fiscal year revenues already total nearly $37 billion.

“Which is $6.519 billion or 21.4% more than collections in the same period of FY2021, and $2.666 billion or 7.8% more than the year-to-date benchmark,” the department said.

April’s tax revenue came in $2 billion over revenue forecasts, setting a monthly surplus record and causing many politicians, including state Sen. President Karen Spilka, to say they would consider some sort of tax relief for residents before the legislative session ends on July 31.

Speaker of the House Ron Mariano has said he is open to several tax relief ideas, but hasn’t been specific on what form relief may take.

Gov. Charlie Baker, in January, asked for nearly $700 million in tax cuts. His plan has since been stuck in legislative committee. That plan would see relief for seniors, renters, low income families and a lowering of the excise and capital gains taxes.

BOSTON, MA.- Senate President Karen Spilka takes questions as Gov. Charlie Baker looks on during a press conference following the leadership meeting at the Massachusetts State House on May 2, 2022 in Boston, MA. (Photo by Amanda Sabga/MediaNews Group/Boston Herald)
BOSTON, MA.- Senate President Karen Spilka takes questions as Gov. Charlie Baker looks on during a press conference following the leadership meeting at the Massachusetts State House on May 2, 2022 in Boston, MA. (Photo by Amanda Sabga/MediaNews Group/Boston Herald)
BOSTON, MA - April 8: The State House dome shines brilliantly on April 8, 2022 in Boston, Massachusetts.  (Staff Photo By Matt Stone/MediaNews Group/Boston Herald)
BOSTON, MA – April 8: The State House dome shines brilliantly on April 8, 2022 in Boston, Massachusetts. (Staff Photo By Matt Stone/MediaNews Group/Boston Herald)
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