State DOR says April’s take way above expectations
Even the Department of Revenue didn’t see April’s tax windfall coming.
“Preliminary revenue collections for April 2022 totaled $6.941 billion, which is $3.076 billion or 79.6% more than actual collections in April 2021,” the department announced this week.
That’s $3 billion — with a ‘b’ — more tax revenue than last year and a full $2 billion more than the department expected to pull in.
Revenues were up in all categories compared to last year except for sales tax, which only went down due to a change in April 2021 which required early payment of some meals and room taxes, padding numbers that month, the department said.
“April collections increased in most major tax types in comparison to April 2021 collections and the April 2022 monthly benchmark, including increases in withholding, non-withholding, corporate and business tax, and ‘all other’ tax”. Sales and use tax decreased relative to April 2021 collections but increased relative to the April 2022 benchmark,” Commissioner Geoffrey Snyder said in a release.
April is typically the largest tax month, according to the department.
Of the nearly $8 billion collected in April, income tax accounted for $5.2 billion — 140% of last year’s income tax haul. The massive jump this year is partly due to the delay of last year’s tax filing until May 17, the department said, but even with that accounted for, this year’s revenue still represents a 43%, or $1.6 billion, reach above the monthly benchmark.
According to credit ratings agency S&P Global Ratings, Massachusetts is not the only state finding itself flush with cash.
“In S&P Global Ratings’ view, state budgets have benefited over the past year from an economic environment boosted by federal stimulus injections, low bond interest rates, and pent-up consumer demand,” the agency said in a late April report. “Accordingly, state revenues have largely been reported as better than forecast and have remained strong even in the wake of generationally high inflation levels.”