Developing a cost-effective system that would allow businesses to pay sales taxes owed to the state on a daily basis is “not feasible” under the timeline envisioned by the Legislature, the Department of Revenue has determined.

The House and Senate packed a measure into the state’s fiscal 2018 budget to begin collecting sales taxes in real time by June, which would give the state an extra month of sales tax revenue this fiscal year totaling an estimated $125 million.

While DOR plans to take steps to make sure the inability to create the system by June will not impact the current state budget, it could cost budget writers a month of sales tax revenues next year unless they once again order taxes collected on June 2019 sales to be credited to fiscal 2019 instead of fiscal 2020.

DOR does believe it would be possible with existing technology to develop a system to collect sales and meals taxes daily from retailers, but for now it will “take no further action on the implementation” of such a system. Administration officials said DOR will convene a working group to continue exploring the issue.

Revenue Commissioner Christopher Harding wrote to House and Senate leaders on Wednesday informing them that the agency had studied and determined that “accelerated sales tax remittance cannot be implemented cost-effectively by June 2018 within acceptable risk parameters.”

Sales taxes is currently paid by consumers at the point of sale, held by businesses and remitted to the state on a monthly basis by the 20th day of the month after the taxes are collected. Legislators hoped to eliminate the lag time, and in the process create a one-time revenue boost for the fiscal 2018 budget.

Harding said that the administration would still credit sales taxes collected in June of next year to the fiscal 2018 budget, even though the state won’t receive those revenues until the end of July, which will be fiscal year 2019.

That credit should negate any negative impacts on the current budget, but the future of the accelerated sales tax program remains in doubt.

Senate Ways and Means Chairwoman Karen Spilka called the determination “a win” for businesses.

“When we saw this in the Senate we were very skeptical about the proposal and we met with many in the business community and they all had concerns,” Spilka said. “This is a win for business and for us, but mostly for businesses. This won’t hurt businesses and that’s what we were concerned about.”

Spilka explained that after the House put the accelerated sales tax provision in its version of the budget, the Senate insisted on a clause being added that ordered the Department of Revenue to conduct a feasibility study by Nov. 1.

During the development of the current budget, the Retailers Association of Massachusetts strongly objected to the accelerated sales tax measure, arguing that it was not “a cost-effective or workable solution.”