February brings higher state tax take after 2 down months
BOSTON (AP) — State revenue officials say tax collections rebounded in February after a dismal couple of months.
The Massachusetts Department of Revenue took in more than $1.4 billion last month, which was more than 13 percent above February 2018 levels.
Last month’s collections also exceeded the state’s monthly benchmark by 8.5 percent.
Lower-than-expected revenues in December and January had raised alarms about whether the state would be able to meet all its budget commitments for the current fiscal year.
Officials blamed the downturn on a change in the federal tax code that limits the exemption for state and local tax payments. That resulted in fewer taxpayers making estimated payments to the state.
Even with the February boost, tax collections through eight months of the fiscal year are still running slightly below projections.