Mass. revenue up $178M in Sept., ahead of state’s benchmark

BOSTON – The Mass. Department of Revenue last week said that September revenue was $178 million more than the same month in 2011, and $141 million above the monthly benchmark set by the department.
Overall, for the first quarter of fiscal 2012, revenue in Massachusetts is now up $310 million from a year ago – $190 million above the benchmark.
According to the department, the tax-collection summary for September shows that virtually all of the revenue growth came from income tax collections. In particular, the department said, the high figure came from growth in income withholding ($69 million) and in cash-estimated payments ($66 million), while the amount of refunds paid out ($20 million) was less than forecast.
The department did say, however, that some of the growth in withholding may be timing-related; payments due in October may have come in early at the end of September.
Several one-time tax settlements totaling $71 million bumped up corporate tax collections to $14 million above benchmark.
The sales tax collection – considered a measure of consumer spending and confidence – was essentially flat for the month. Regular sales tax collection was equal to that of a year ago; small growth came in meals tax ($3 million more than a year ago) and sales tax on motor vehicles ($4 million more than a year ago).
Massachusetts is on track later this year for a possible slight reduction in the December income tax rate (from 5.30 to 5.25 percent), the department said. &#8226