BOSTON — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder announced that preliminary revenue collections for December totaled $4.345 billion, $573 million or 15.2 percent more than actual collections in December 2023, and $267 million or 6.5 percent above benchmark.

 

FY2025 year-to-date collections totaled approximately $19.260 billion, which is $1.394 billion or 7.8 percent more than actual collections in the same period of FY2024, and $159 million or 0.8 percent above the year-to-date benchmark.

 

DOR estimates that roughly $197 million of the year-over-year increase in December reflects one-time events in withholding and estate taxes, without which December 2024 revenue would be about $376 million or 10.0 percent more than actual collections in December 2023 and $70 million above the December benchmark. Without these one-time payments, year-to-date collections would be $38 million or 0.2 percent below the year-to-date benchmark.

 

"December revenue included increases relative to December 2023 collections in non-withheld income tax, sales tax, corporate and business tax, and ‘all other tax'," said Commissioner Snyder. "The increase in non-withholding income tax is due, in part, to a likely increase in surtax revenue and the pass-through entity excise, and the impact of a tax amnesty program administered by DOR from Nov. 1 to Dec. 30, 2024. The increase in sales tax is partly due to typical timing factors in collections and the amnesty program. The increase in ‘all other tax' is due to an increase in estate tax, a category that tends to fluctuate. The increase in corporate and business tax is primarily the result of higher corporate return payments."

 

December is a significant month for revenues because many corporate and business taxpayers are required to make quarterly estimated payments. In addition, some quarterly personal income tax estimated payments due by Jan. 15 are received in December. Historically, roughly 9.5 percent of annual revenue, on average, has been received during December.

 

Given the brief period covered in the report, December results should not be used as a predictor for the rest of the fiscal year.

 

Details:

Income tax collections for December totaled $2.493 billion, $119 million or 5.0% above benchmark, and $265 million or 11.9 percent more than December 2023.

Withholding tax collections for December totaled $1.751 billion, $119 million or 6.4% below benchmark, and $4 million or 0.3 percent less than December 2023.

Income tax estimated payments for December totaled $610 million, $169 million or 38.3% above benchmark, and $174 million or 39.9 percent more than December 2023.

Income tax returns and bills for December totaled $157 million, $31 million or 24.1% above benchmark, and $55 million or 54.0 percent more than December 2023.

Income tax cash refunds for December totaled $26 million in outflows, $39 million or 60.3% below benchmark, and $40 million or 61.0 percent less than December 2023.

Sales and use tax collections for December totaled $864 million, $2 million or 0.2% below benchmark, but $113 million or 15.0 percent more than December 2023.

Corporate and business tax collections for December totaled $668 million, $15 million or 2.4% above benchmark, and $51 million or 8.2 percent more than December 2023.

"All other" tax collections for December totaled $321 million, $135 million or 72.7% above benchmark, and $146 million or 83.2 percent more than December 2023