BOSTON (WWLP) – State tax collections continue to come in below expectations, three months into the new fiscal year.
The Massachusetts Department of Revenue collected $2.7 billion in taxes last month, which is a slight improvement from September 2015. Still, total tax collections are lower than expected. That is a bit surprising, because September is one of the biggest months for tax collections.
Preliminary tax collections for the month of September show that sales tax revenues came in $18 million below benchmarks at $526 million.
The Department of Revenue said this is a trend that began earlier this year, meaning fewer Massachusetts residents are spending their money in the Commonwealth.
“Financial times for people at home are a little bit tighter than usual, and so you see that reflected in the sales tax when people are going out to make purchases. I think that’s a trend that will eventually change as time goes on,” said Rep. Todd Smola (R-Warren).
State tax collections are currently running $71 million below benchmarks.