November Tax Collections Outpace Benchmark

Tax collectors at the Department of Revenue raked in $2.382 billion last month, which is less than what was collected during November 2021 but still more than 10 percent more than what the Baker administration had been expecting.

November 2022 tax receipts were down $32 million or 1.3 percent compared to November 2021, which DOR attributed to a difference in the timing of collection of a certain tax type this year. DOR had set last month’s benchmark at $2.161 billion but exceeded that by $221 million or 10.2 percent.

“November collections decreased in withholding income tax, non-withholding income tax, and ‘all other tax’ in comparison to November 2021,” Revenue Commissioner Geoffrey Snyder said. “These decreases were partially offset by increases in sales and use tax and corporate and business tax. The decrease in withholding is mostly due to the timing of the receipt of withholding payments. In FY2022 certain withholding payments were received in November, whereas in FY2023, these payments were received in October.”

November generally accounts for about 6.5 percent of the state’s annual tax revenue, DOR said.

Now through five months of fiscal year 2023, state tax revenues of $13.946 billion are running $337 million or 2.5 percent ahead of actual collections during the same time period in fiscal year 2022 and $749 million or 5.7 percent ahead of DOR’s year-to-date benchmark. December revenue figures will be due Thursday, Jan. 5 and DOR has set the monthly benchmark at $3.506 billion.