June collections top monthly benchmark by $89 million; full year collections exceed FY13 revised estimate by $627 million (Boston, MA)-Revenue Commissioner Amy Pitter today announced that preliminary revenue collections for June totaled $2.464 billion, $171 million or 7.4 percent more than the state took in last June. Better than expected corporate and business collections, income cash estimated payments, and strong estate tax payments offset a shortfall in withholding and income tax payments with returns to end the month $89 million above the monthly benchmark based on the revised FY13 revenue estimate of $21.496 billion.
The fiscal year ended with $22.123 billion in revenue collections, $1.009 billion or 4.8 percent more than a year ago and $627 million over the FY13 benchmark. Most of the fiscal year surplus was driven by investment-related income surges due to federal tax changes, better than expected corporate profits in 2012 and one-time tax settlements.
"We continue to be cautious about using those hard-to-predict revenue sources to make future budgetary decisions," said Commissioner Pitter. "We look more to withholding and sales tax revenues to reflect current economic trends and they grew very modestly in FY13 ending below our yearly expectations."
June is, historically, the second largest tax collection month behind April because quarterly estimated payments are due for both corporate and business taxpayers and individuals. Income tax collections of $1.296 billion were $61 million or 5.0 percent more than a year ago and $9 million over the monthly benchmark, ending the fiscal year with $12.831 billion which was $367 million more than anticipated FY13 collections.
Withholding collections for June totaled $859 million, up $25 million or 3.0 percent from last June and $2 million below the June benchmark. The FY13 withholding collections totaled $10.015 billion, up $248 million or 2.5 percent from the same period last year, but $21 million below anticipated full year collections.
Income tax payments with returns or tax bills for June totaled $45 million, down $4 million or 8.2 percent from the same period last year and $10 million below the monthly benchmark. FY13 income tax payments with returns and bills are $2.113 billion, $403 million or 23.6 percent more than FY12 and $211 million above the year-to-date benchmark.
Income cash estimated payments totaled $442 million, $47 million or 12.0 percent more than last June and $28 million above the monthly benchmark. FY13 collections brought in $2.106 billion which was $273 million or 14.9 percent over a year ago and $180 million above the full year benchmark.
Income cash refunds for June totaled $50 million, up $6 million or 13.9 percent from last June and $6 million above the June benchmark. The FY13 cash refunds totaled $1.408 billion, up $10 million or 0.7 percent from the same period last year, $3 million above the full year estimate.
Sales tax collections for June totaled $454 million, up $13 million or 2.9 percent from last June and $5 million above the June benchmark. FY13 sales tax collections totaled $5.164 billion, up $105 million or 2.1 percent from the same period last year, but $12 million below anticipated full year collections.
Corporate and business tax collections of $491 million were up $56 million or 12.9 percent from a year ago and were $38 million above the monthly benchmark. Full year collections totaled $2.262 billion, $58 million or 2.5 percent below the same period last year but $225 million above the full year benchmark.
Other tax collections, which include revenues from deeds and estates, brought in $224 million, $40 million or 22.0 percent more than last June and $37 million over the June benchmark. FY13 collections totaled $1.867 billion, $43 million or 2.3 percent above the same period last year and $48 million above the full year benchmark.
As required by law, tax revenues from realized capital gains exceeding $1 billion and any settlement or judgment payments above $10 million are required to be transferred to the stabilization fund. On July 1, 2013, the Department of Revenue and the Office of the Attorney General jointly certified that FY13 tax and non-tax related settlement and judgment payments totaled $133.8 million ($109 million of this total was received after last December when the FY13 revenue estimate was revised). DOR is in the process of certifying the total amount of capital gains receipts for FY13.