Massachusetts’ revenue rose to
$1.05 billion last month, an increase of 3.5 percent from a year
earlier, bolstered by a tax increase and more companies filing
electronically.
Total tax collections for July, the first month of
Massachusetts’ fiscal 2004, were $15 million above the state’s
forecast.
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“While it’s always good to hit the benchmark, there is still
cause for concern in these numbers,” said Department of Revenue
Commissioner Alan LeBovidge in a statement. “Withholding taxes
were up compared to last year, but were below the monthly
projection.”
Withholding taxes, which are deducted directly from employee
paychecks, make up most of the state’s income tax collections —
its largest tax source.
The 13th-most populous U.S. state has been hit hard by the
economic slowdown. In 2002, personal income tax revenue in
Massachusetts fell 18.5 percent from the previous year, according
to the Nelson A. Rockefeller Institute of Government; only
California had a steeper decline of 25.6 percent.
Massachusetts’ income tax revenue for July was $553 million,
an increase of 2.7 percent from last year bolstered by increased
taxes from the state reducing personal tax exemptions.
Also, the state on July 1 began requiring payroll companies
and many large businesses that collect trustee taxes to pay their
bills electronically rather than mailing checks. So tax payments
are being received earlier and aren’t spilling over into the next
month, the revenue department said.
Withholding tax collections rose 2.9 percent from last July
to $529 million, and was $5 million short of the state’s
projection. Sales and use tax collections were $335 million, up
0.3 percent from last year. The state’s corporate and business tax
collections rose 35.8 percent in July to $28 million.
Bloomberg News
