TAX NEWS - JUNE 2010

Massachusetts Tax: Massachusetts tax revenues up in May; down $70m for year

04 June 2010 -- Massachusetts collected $1.57 billion in tax revenues in May, up $292 million, or 23 percent, compared to May of last year.

Overall, Massachusetts tax collections are still $70 million below projections for the fiscal year that ends June 30.

Massachusetts tax officials had anticipated a jump in May revenues because the filing deadline for returns this year was extended from April 15 to May 11 due to severe spring flooding.

Massachusetts tax officials hoped to make up for a drop in April revenues, but still fell short.

Revenue Commissioner Navjeet Bal blamed the sluggish tax collections on a decline in capital gains tax.

Gov. Deval Patrick's Secretary of Administration and Finance Jay Gonzalez said the May numbers show the Massachusetts economy is recovering stronger and faster than expected.