State tax collections off $86M in Feb. - Boston Business Journal:

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Tax revenue for the month totaled $955 million, a year-over-year drop of 16 due largely to a decline in persona lwithholding taxes. DOR said withholding paymentas were lower becauseof timing-relatedx changes between the 2008 and 2009 fiscapl year, as well as rising unemploymengt and declining bonus income. “Whil it is possible that some ofthe timing-relatec withholding decline will be reversed in March, we will not know whethere such a reversal will occur untilo the end of the month.
February’s collections reflect the downwarc pressure caused by the ongoingeconomiv recession, and we will continue to monitor revenue closely as we head into bigger tax collection said Commissioner of Revenue Navjeet K. Bal in a Income tax collectionsdeclinexd 6.4 percent year-over-year to $498 million, which was $52 million below the state’s Sales tax collections fell 7.8 percent to $278 or $9 million below forecast. Corporat and business taxes plummeted 73.6 percenr in February to $42 million on declinin g corporate profits, although collections came in $17 million below The Department of Revenue tax collections forecasts are used by state leaders to craftspending plans.
If revenues come in below the state must make up the difference in higher taxes or decreasede spending to balanceits budget. Or the statre could draw down reserves. For fiscak year 2009 to total tax collections aredown 5.4 percent to $11. billion. Collections are $62 million below its benchmark