CONCORD – State taxes and fees were nearly 10 percent off the forecast last month, and the report raised the likelihood cigarette taxes will go up in mid-October.
The total revenue was $101 million when $111 million had been expected.
After two months, revenue is $11.6 million below forecast but $1.8 million more than had come in during the same period last year.
August is one of the two, smallest months for state revenue in the state budget year that began July 1.
Tourism-driven taxes on hotel rooms and restaurant meals, cigarettes, liquor and lottery sales all fell well below their forecast.
The tobacco lobby convinced the Legislature to cancel an increase in the cigarette tax of 26 cents per pack if sales reached $50 million the first three months of this year.
With one month left to go, only $32 million had come in and that’s 4 percent less than last year by this time.
The state’s current tax is $1.08 and Massachusetts raised its own tax by $1 a pack last month.
The only bright spot in the report came from the state’s two business taxes that brought in $12 million or $1.6 million more than had been expected. September is the first, significant barometer for revenue.
Last month, Revenue Commissioner Phil Blatsos predicted that revenue would fall $100 million short of the year’s forecast.