BOSTON (WWLP) – After months of healthy tax revenue, the state saw a significant dip in April compared to the past fiscal year.
Tax collections were so high last year, that nearly $3 billion worth of tax rebate checks were sent back to taxpayers under Chapter 62F. So it may come to a surprise that this past April revenue was below benchmark. The Department of Revenue collected around $32 billion in taxes through April. This was 6.3% less than last April.
The comparison from April 2022 to April 2023 is even more jarring, with a drop of over $2 billion, or 31%. And in total this year, the state has taken in $703 million less than it has originally planned for.
Secretary of Administration and Finance Matthew Gorzkowicz said in a statement, “We remain confident in our ability to work with our partners in the Legislature to adjust and utilize available resources to manage the budget and close the fiscal year in balance.”
Gorzkowicz also said he doesn’t see the poor numbers impacting the budget balance, but that it “would decrease planned transfers” to the state’s rainy day fund, which is already at $7.1 billion.
We will have to wait and see where May brings us, but May is expected to bring in over $2.5 billion.