Fiscal year 2023 got off to a strong start for the tax collectors at the Department of Revenue as they hauled in $2.367 billion during July, an increase of $101 million or 4.5% over last July.
July is one of the least significant months for state tax revenue, typically bringing in only about 6.7% of the annual total. After adjusting for an elective pass-through entity excise that skews some comparisons, DOR said last month’s collections were at least $92 million ahead of July 2021 receipts. There is not yet a monthly benchmark against which to judge the month’s take; DOR said benchmarks are still in development for fiscal 2023.
“July revenue included increases relative to July 2021 collections in withholding, non-withheld income tax, sales tax, and decreases in corporate and business tax and the ‘all other taxes’ category,” Revenue Commissioner Geoffrey Snyder said. “The increase in withholding reflects current labor market conditions, while the decrease in corporate and business tax was the result of typical periodic fluctuations.”
The announcement of July’s strong start comes while DOR continues to process data related to June 2022 tax collections and final fiscal year 2022 figures — determinations that could affect the amount of money made available to taxpayers under the now infamous Chapter 62F. DOR said Wednesday that those figures will be available this week.
The Fiscal Year 2023 budget that Gov. Charlie Baker signed last month is built on a tax revenue forecast of $39.576 billion, an increase of $2.66 billion over the consensus tax projection the administration and lawmakers agreed to in January.
– Colin A. Young / SHNS