BOSTON -- Department of Revenue Commissioner Amy Pitter today announced that preliminary revenue collections for April totaled $2.736 billion, $129 million or 4.5 percent below what the state took in last April, and $107 million below the April benchmark.
After accounting for April performance, year to date tax collections are now $121 million above the revised tax revenue estimate of $23.2 billion. The April below-benchmark performance was heavily concentrated in the income tax payments with returns and extensions category, which came in $126 million below the monthly benchmark, largely due to greater than anticipated acceleration of capital gains realizations in 2012 in response to federal tax rate changes effective January 1, 2013. April collections also included $30 million in tax settlements exceeding $10 million which by current law are dedicated to the Rainy Day Fund.
"Revenues from capital gains were up significantly at the end of 2012 as a reaction to federal fiscal policy changes, and we signaled that these revenues were borrowed from future years," said Commissioner Pitter. "Year-to-date revenues from withholding and sales tax, which are more directly linked with the current economic conditions, and estimated payments, generally continue to perform in line with benchmark, reflecting the moderate growth we anticipated and general investor optimism about business and economic conditions.
April is historically the largest tax collection month of the year when payments with income tax returns and extensions for the previous year are due and the first quarterly estimated income tax payments are due for the new tax year.
Income tax payments with bills and returns in April totaled $1.297 billion, down 225 million or 14.8 percent from the same period last year, and $126 million below the monthly