BHI Forecast Update: State tax revenues to increase by 2.1% in FY 2010 and by 4.4%
in FY 2011
(BOSTON, Dec. 16, 2009) – After examining the state’s slide into a recession and the prospects for recovery, The Beacon Hill Institute at Suffolk University (BHI) will release its revised forecast of Massachusetts state tax revenues for fiscal year FY2010 and a new forecast for FY2011.
The Institute’s forecasts for state tax revenues are:
For FY 2010 (ending June 30, 2010): $18.636 billion, representing an increase of 2.1% from FY 2009; and
For FY 2011 (ending June 30, 2011): $19.457 billion, representing an increase of 4.4% over the estimated FY 2010.
The Institute estimates that while net income tax collections for FY 2010, the current year, will fall by 4.7% they will rebound by 5.5% in FY 2011. It also estimates that sales tax collections (which include revenues from the recent tax increase) will close out the fiscal year up by 8.4% and grow by 6.1% in FY 2011. Corporate excise tax collections are estimated to grow by 4.2% in FY 2010 and 2.6% in FY 2011. Press release.