Through the first half of June, Massachusetts state tax collectors have reported significant increases in all major tax categories, surpassing expectations and setting new records for revenue generation.Record-Breaking Revenue Collection
The Department of Revenue announced that from June 1 through June 14, they collected a total of $2.094 billion. This amount reflects a substantial increase of $483 million or 29.9 percent compared to collections during the same period in June 2023. The state is on track to collect an impressive $4.227 billion by the end of June, marking a significant boost in revenue for fiscal year 2024.Strong Fiscal Performance
As of the end of May, the state had already collected $36.306 billion in tax revenue for the first 11 months of fiscal year 2024. This amount exceeds collections at the same point in fiscal 2023 by $1.279 billion, representing a 3.7 percent increase. Moreover, it is $700 million or 2 percent ahead of the year-to-date benchmark set for the fiscal year.Budget Adjustments and Revenue Optimization
Governor Maura Healey implemented mid-year budget cuts, diversified revenue sources, and reduced the year-end revenue estimate by $1 billion earlier this year due to revenue shortfalls. However, the state's financial situation improved significantly in April, offsetting the impact of a below-benchmark performance in May. It remains uncertain how much of the revenue surplus from April will be allocated for general budgeted spending, as a large portion of it originated from capital gains and income surtax revenue earmarked for specific purposes.Looking Ahead
With fiscal year 2024 ending on June 30, the Department of Revenue is expected to release full-year revenue collections along with the final numbers for June. The state's strong fiscal performance and robust revenue collection in the first half of June signal a positive outlook for Massachusetts' financial standing heading into the new fiscal year.