Menu
Tax Notes logo
HOMEFree Resources

Massachusetts DOR Reports on December 2020 Revenue Collections

Dated Jan. 8, 2021

SUMMARY BY TAX ANALYSTS

The Massachusetts Department of Revenue commissioner has reported that December 2020 collections were up $230 million — or 8.8 percent — from December 2019, with increases in income tax, withholding tax, and corporate and business tax revenues of $44 million, $44 million, and $201 million, respectively; income tax estimated payments and sales and use tax collections saw drops of $4 million and $9 million, respectively.

The commissioner also noted that COVID-19 continues to affect revenues and that December monthly and year-to-date figures should be "used with caution."

December Revenue Collections Total $2.842 Billion

Monthly collections up $230 million or 8.8% vs. December 2019 actual

1/06/2021

 (BOSTON, MA) — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that December revenue collections totaled $2.842 billion, $230 million or 8.8% more than the actual collections in December 2019.

FY2021 year-to-date collections totaled approximately $14.306 billion, which is $372 million or 2.7% more than collections in the same period of FY2020.

“December revenue included increases in corporate and business taxes, withholding, and regular sales tax, as well as decreases in meals tax and 'all other' tax,” said Commissioner Snyder. “The increase in withholding reflects increases in unemployment insurance benefits and the increase in corporate and business taxes is partly attributable to one-time business restructuring events and timing factors such as changes to corporate estimated payment installment patterns. DOR will continue to monitor revenue collections closely in the coming months.”

In general, December is a significant month for revenues because many corporate and business taxpayers are required to make quarterly estimated payments. In addition, quarterly income estimated payments could also begin to come in (income estimated payments are due by January 15th). December generally produces about 9.5% of annual revenue, making December the fifth largest revenue month of the year.

Similar to prior months, collections in December reflected the impact of filing and payment due date extensions for regular sales, meals, and room occupancy taxes. The due date for these tax types has been extended several times this year for certain businesses.1 The most recent extension was announced on September 15, 2020. With this extension, returns and payments of these taxes for certain small businesses originally due during the period beginning March 2020 through April 2021 will instead be due in May 2021.2

Note that December revenues continued to reflect the impact of COVID-19 on the tax base. Consequently, the December monthly and year-to-date figures should be used with caution.

Also note that DOR has finalized the monthly benchmarks for the January to June 2021 period based on the revised FY21 tax revenue estimate of $28.390 billion, not including $50 million in settlements and judgments estimated to be certified in FY21. The benchmarks will be posted on the DOR website.3

Details

Preliminary December Revenue Collections

  • Income tax collections for December were $1.477 billion, $44 million or 3.1% more than December 2019.

  • Withholding tax collections for December totaled $1.306 billion, $44 million more than December 2019.

  • Income tax estimated payments totaled $138 million for December, $4 million less than December 2019.

  • Income tax returns and bills totaled $41 million for December, $6 million more than December 2019.

  • Income tax cash refunds in December totaled $8 million in outflows, $1 million more outflow than December 2019.

  • Sales and use tax collections for December totaled $581 million, $9 million less than December 2019.

  • Corporate and business tax collections, including corporate estimated payments, for December totaled $589 million, $201 million more than December 2019.

  • “Other tax” collections for December totaled $195 million, $6 million less than December 2019.

December 2020 Tax Collections Summary (in $ millions) Preliminary as of January 06, 2021 (/doc/december-2020-tax-collections-summary-in-millions-preliminary-as-of-january-06-2021/download)

FOOTNOTES

1 https://www.mass.gov/technical-information-release/tir-20-7-extension-of-late-file-and-late-pay-penalty-relief-for (/technical-information-release/tir-20-7-extension-of-late-file-and-late-pay-penalty-relief-for).

2 https://www.mass.gov/news/massachusetts-announces-extension-of-administrative-tax-relief-for-local-businesses (/news/massachusetts-announces-extension-of-administrative-tax-relief-for-local-businesses).

3 https://www.mass.gov/lists/year-to-date-and-monthly-tax-collection-benchmark-ranges (/lists/year-to-date-and-monthly-tax-collection-benchmark-ranges).

END FOOTNOTES

Copy RID