Tax revenue in 2017 grew just 1.4 percent
State tax collections for the 2017 fiscal year rose just 1.4 percent over fiscal 2016.
State tax collections for the fiscal year that ended June 30 rose only 1.4 percent from fiscal 2016, but were up 3.1 percent in June compared to June 2016, the Department of Revenue reported on Friday.
Final fiscal 2017 collections fell $431 million below budget benchmarks, contributing to state budget adjustments that Gov. Charlie Baker has been making in recent months and which are continuing into fiscal 2018, which began July 1.
Revenue Commissioner Michael Heffernan offered a bullish take on the state's fiscal picture.
"We saw solid year-over-year increases in withholding and in sales and use tax revenue. These results indicate continued growth in the economy," Heffernan said in a statement. "The categories of estimated payments, payments with returns, and corporate and business taxes, which are most prone to volatility, were down year-over-year and generated the FY2017 shortfall. We will continue to closely monitor those categories."
Sales and use tax collections of $6.209 billion were $19 million or 0.3 percent above benchmark and $155 million or 2.6 percent greater than fiscal 2016. Withholding collections of $11.970 billion were $20 million or 0.2 percent above benchmark and $543 million or 4.8 percent more than 2016.
Heffernan was named this week by Gov. Charlie Baker to serve as the state's next budget chief, taking over from Kristen Lepore as she transitions into the governor's office as chief of staff, replacing Steve Kadish.
WBJ Web Partners
Most Recent
Most Recent
0 Comments