Taxes, fees, lottery profits and grants from the federal government comprise the bulk of the available revenue for budgeting.
| 2007 Sources for Budgeted Funds | ||
| Taxes | 18,444,891 | 64.5% |
| Federal reimbursements | 6,167,575 | 21.6% |
| Departmental and other revenues (esp. fees and charges) | 2,218,414 | 7.8% |
| Interfund transfers from non-budgeted funds and other sources (includes lottery) | 1,785,002 | 6.2% |
| Total budgeted revenues and other sources of funds | 28,615,882 | 100.0% |
Source: Page 7 of Statutory Basis Financial Report.
The income tax accounts for almost 2/3 of state tax revenues.
| FY2007 Tax Revenues | Type of Fund that Receives Revenue | ||||||
| Budgeted (1) | % of Budgeted | Other (2) | Total | ||||
| Alcoholic Beverages | 70,958,257 | 0.4% | 70,958,257 | ||||
| Alcoholic Beverages – Club | 770,024 | 0.0% | 770,024 | ||||
| Cigarettes | 438,074,148 | 2.4% | 438,074,148 | ||||
| Deeds | 140,824,781 | 0.8% | 140,824,781 | ||||
| Motor Fuels | 676,119,121 | 3.7% | 676,119,121 | ||||
| Sales — Regular | 1,738,039,710 | 9.4% | 1,738,039,710 | ||||
| Sales — Services | 147,471,559 | 0.8% | 147,471,559 | ||||
| Sales — Meals | 608,662,364 | 3.3% | 608,662,364 | ||||
| Sales — Motor Vehicles | 342,005,124 | 1.9% | 342,005,124 | ||||
| Sales Tax — Total | 2,836,178,757 | 15.4% | 1,239,370,249 | 4,075,549,006 | |||
| Other (3) | 74,100 | 0.0% | 43,825,251 | 43,899,351 | |||
| Room Occupancy | 111,087,290 | 0.6% | 46427614 | 157,514,904 | |||
| All Consumption Taxes | 4,274,086,478 | 23.2% | 1,329,623,114 | 5,603,709,592 | |||
| Business Taxes | |||||||
| Banks | 340,936,924 | 1.9% | 340,936,924 | ||||
| Corporations | 1,587,636,140 | 8.6% | 1,587,636,140 | ||||
| Insurance | 369,030,296 | 2.0% | 369,030,296 | ||||
| Public Utilities | 178,324,574 | 1.0% | 178,324,574 | ||||
| All Business Taxes | 2,475,927,934 | 13.5% | 2,475,927,934 | ||||
| Income/Wealth | |||||||
| Estate & Inheritance | 249,596,703 | 1.4% | 249,596,703 | ||||
| Income | 11,399,648,548 | 62.0% | 11,399,648,548 | ||||
| All Income/Wealth Taxes | 11,649,245,251 | 63.3% | 11,649,245,251 | ||||
| Total DOR Reported Taxes (4) | 18,399,259,663 | 100.0% | 1,329,623,114 | 19,728,882,777 | |||
| (1) Budgeted Funds include: General Fund, Highway Fund, Stabilization Fund, Inland Fisheries and Game Fund, Mass. Tourism Fund | |||||||
| (2) Other Funds include: Convention Center Fund, MBTA Contribution, School Modernization Fund, Community Preservation Fund | |||||||
| (3) Other Revenues primarily include: Convention Center Surcharges and Community Preservation Surcharges deposited into those non-budgeted funds. | |||||||
| (4) Taxes for budgeted funds that are not reported through Department of Revenue include the UI Surcharge for Workforce Development ($21.5 million) | |||||||
| and miscellaneous other very small revenue sources. | |||||||
Source: Analysis of June 2007 Department of Revenue “Blue Book” and related information from Statutory Basis Financial Report.
Medicaid accounts for roughly 60% of budgeted federal reimbursements.
Major health health and welfare programs account for much of the rest — including for example, Temporary Assistance to Needy Families and the Social Services Block Grant.
Additional major federal programs — Highway Construction funding, major local education assistance programs ( Title I, Special Education, School lunch), Section 8 Vouchers — do not, for the most part, flow through the budgeted funds.
The state receives over 300 additional minor categories of federal assistance.
Federal reimbursement numbers are not broken out in detail in the main financial reports of the state. There is a single audit report which includes a list of all federal grant programs, but it does not classify the programs on a state fund basis.
Lottery distributions totalled $1 billion in FY2007, including distributions for the arts.