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BOSTON (State House News Service) — State tax collectors hauled in $2.416 billion last month, keeping the recent trend of above-benchmark receipts going as the November total exceeded Baker administration expectations by almost 9 percent.
The Department of Revenue said that preliminary revenue collections for November 2021 were $289 million or 13.6 percent greater than actual collections in November 2020 and $192 million or 8.7 percent above the administration's monthly benchmark amount.
Revenue Commissioner Geoffrey Snyder said that last month's collections increased in most major tax types -- including withholding, sales and use tax, and the "all other" category -- in comparison to November 2020.
"The increase in withholding is likely related to improvements in labor market conditions. The sales and use tax increase in part reflects continued strength in retail sales and the easing of COVID-19 restrictions. The increase in 'all other' tax is primarily attributable to estate tax, a category that tends to fluctuate, as well as room occupancy excise," Snyder said.
November is "among the lower months for revenue collection, because neither individual nor business taxpayers make significant estimated payments during the month," DOR said. The month typically brings in about 6.5 percent of the state's annual tax revenue.
Now five months into fiscal year 2022, the state has collected approximately $13.612 billion from residents, workers and businesses, which is $2.145 billion or 18.7 percent more than collections in the same period of fiscal 2021 and $914 million or 7.2 percent more than what DOR expected to have collected at this point in the year.
Fiscal year 2021 produced a surplus of roughly $5 billion, the last of which will be redeployed by Beacon Hill when Gov. Charlie Baker signs the $4 billion American Rescue Plan Act and surplus spending bill that the Legislature finalized Friday.
Written by Colin A. Young, SHNS