BOSTON—Massachusetts revenue officials say a surprisingly large increase in tax collections from investment income helped fuel a 43 percent increase in April tax collections compared with a year ago.
The Department of Revenue said Tuesday the state collected $2.5 billion in taxes last month, $758 million more than in April 2010. Last month's total was also nearly $600 million above revised monthly benchmarks.
The state had expected increased April income tax payments due to the improving economy. Also, severe flooding delayed the April 2010 filing deadline until May in several counties.
Officials were not as quick to explain the hike in revenues from interest and dividends and capital gains. They say it appears many taxpayers chose to cash in some of their investments during 2010 and are now paying taxes on those gains.