BOSTON, Mass. (WWLP)– Massachusetts Department of Revenue (DOR) is reporting that preliminary revenue collections for March totaled $3.849 billion.

The amount is $10 million or 0.2% less than actual collections in March 2022, but $228 million or 6.3% above benchmark.

FY2023 year-to-date collections through March totaled approximately $27.501 billion, which is $45 million or 0.2% less than collections in the same period of FY2022, but $230 million or 0.8% above the updated year-to-date benchmark.

“March collections increased in most major tax categories including withholding, sales and use tax, corporate and business tax, and ‘all other tax’ in comparison to March 2022,” Commissioner Snyder said. “These increases were partially offset by a decrease in non-withholding income tax due to an unfavorable increase in refunds, as well as a decrease in income-return payments. The increase in withholding is likely related to labor market conditions and the increase in corporate and business tax is mostly due to corporate estimated payments. The increase in sales and use tax reflects, in part, continued strength in retail sales. The increase in ‘all other tax’ is primarily attributable to estate tax, a tax category that tends to fluctuate.”

Details from the March report found:

  • Income tax collections for March totaled $1.739 million, $46 million or 2.7% above benchmark, but $122 million or 6.5% less than March 2022.
  • Withholding tax collections for March totaled $1.655 billion, $22 million or 1.3% below benchmark, but $54 million or 3.4% more than March 2022.
  • Income tax estimated payments for March totaled $96 million, $28 million or 40.1% above benchmark, but $6 million or 6.1% less than March 2022.
  • Income tax returns and bills for March totaled $494 million, $72 million or 17.0% above benchmark, but $91 million or 15.5% less than March 2022.
  • Income tax cash refunds for March totaled $506 million in outflows, $31 million or 6.5% above benchmark, and $78 million or 18.2% more than March 2022.
  • Sales and use tax collections for March totaled $697 million, $43 million or 6.6% above benchmark, and $29 million or 4.4% more than March 2022.
  • Meals tax, a sub-set of sales and use tax, for March totaled $117 million, $20 million or 20.7% above benchmark, and $11 million or 10.3% more than March 2022.
  • Corporate and business tax collections for March totaled $1.216 billion, $121 million or 11.0% above benchmark, and $69 million or 6.1% more than March 2022.
  • “All other tax” collections for March totaled $197 million, $18 million or 9.9% above benchmark, and $13 million or 7.2% more than March 2022.

According to DOR, March is a mid-size month for revenue collections, ranking sixth of the 12 months in eight of the last 10 years. Many corporate and business taxpayers are required to make estimated payments during the month. The tax filing season is underway, and March is typically a significant month for refund payments (outflows), which reduce total net revenue.