DOR: February tax revenues crush expectations
State budget managers worried about keeping up with spending demands got a lift from Massachusetts taxpayers for the second straight month.
State revenue collections in January were up 6.1 percent and ran $97 million above benchmark, and the Department of Revenue reported Wednesday night that February's tax haul was up 15 percent over last February and crushed the monthly benchmark by $155 million.
Year-to-date revenues are $232 million above benchmark.
The Department of Revenue attributed the "better than expected performance" to delays in issuing refunds, and Commissioner Amy Pitter said in a statement that without delays in processing refunds and possible delayed motor vehicle purchases, February revenues would be up $3 million above benchmark and year-to-date revenues would be $80 million over benchmark.
"We had no choice but to respond to the increased reports of fraud by taking additional precautions and this resulted in refund delays and impacted February revenues," Pitter said.
Retailers and other businesses have said the regular barrage of snowstorms hurt business in a month when Valentine's Day usually inspires gift-buying and restaurant meals.
Earlier Wednesday, Gov. Charlie Baker released his $38.1 billion fiscal 2016 budget proposal, which seeks to close an estimated $1.8 billion budget gap and includes efforts to save costs and limit spending. Baker has said over-spending has been a driving factor of the state's financial woes.
Sales and use tax collections in February totaled $415 million, which is $12 million below benchmark, according to the Department of Revenue. Year-to-date, sales and use taxes are $55 million below benchmark.
February sales tax revenues were up $19 million, or 4.7 percent, over February 2014.
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