PROVIDENCE, R.I. -- The Rhode Island Department of Revenue released its FY 2015 Cash Collections Report for December 2015 today. The Cash Collections Report, which is issued on a monthly basis, compares current fiscal year cash collections by revenue item on a fiscal year-to-date and monthly basis to prior fiscal year cash collections by revenue item.
The cash collections report makes no adjustments for the timeliness of the receipt of revenues and provides readers with insight into the state's cash flow over the course of the fiscal year. The findings of the December 2015 Cash Collections Report can be found here: http://www.dor.ri.gov/documents/RevenueAnalysisState/FY2016/201512MonthlyAndYTDCashCollections.pdf
"The 2.5-percent rate of growth is in spite of the fact that departmental receipts cash collections and lottery transfer cash collections are down a combined $14.9 million on a year-to-date basis in FY 2016," said Marilyn S. McConaghy, Esq, acting director of the Department of Revenue.
The decline in fiscal year-to-date over fiscal year-to-date lottery transfer cash collections is expected and is attributable to the onset of casino gaming in Massachusetts in June 2015.
The shortfall in departmental receipts cash collections in FY 2016 through December is due to a change in how checks issued by the state that remain uncashed are treated. Previously, these checks were deposited as general revenues in June of the fiscal year. Beginning in FY 2016, these checks are deemed to be unclaimed property and are moved from miscellaneous departmental receipts to the unclaimed property program.
The fiscal year-to-date over fiscal year-to-date growth rate for the personal income tax remains positive at 2.9 percent in spite of withholding cash collections only 1.2 percent greater than last fiscal year through December. Personal income tax refunds and adjustments are $16.8 million less than in the FY 2015 year-to-date period through November and this appears to be the result of a delay in the processing of refunds by the Division of Taxation since November. Finally, FY 2015 year-to-date personal income tax payments include a $10.0 million infrequently occurring estimated payment that was received in December 2014. FY 2016 year-to-date all other general revenues cash collections growth continues to be driven by the business corporations tax which is $19.6 million more than this time last fiscal year.
"FY 2016 total general revenue cash collections for December 2015 declines on a year-over-year basis with personal income tax cash collections falling by 12.6 percent, a nominal decrease of $18.7 million," said McConaghy. "Part of this decrease was due to the receipt of a $10 million estimated payment in December 2014 that was not repeated in December 2015 but that is not the complete story. Both personal income tax final payments and withholding payments were less in December 2015 than in December 2014 and not by insignificant amounts."
In addition to the decline in year-over-year personal income tax cash collections, the lottery transfer also declined in December 2015 versus December 2014. This decline was attributable in large part to decreased revenues from the video lottery terminals installed at Twin River.
Year-over-year growth in sales and use tax cash collections was substantive in December 2015 with both net taxation and registry receipts showing momentum. Finally the increase in all other revenues cash collections in December 2015 from December 2014 is due to increases in business corporations tax cash collections of $8.5 million and cigarettes tax cash collections of $1.7 million. These gains were offset by a $3.8 million decline in estate and transfer taxes on a year-over-year basis.
Questions or comments on the report should be directed to Paul Grimaldi, Chief of Information and Public Relations by e-mail at paul.grimaldi@revenue.ri.gov or by phone at (401) 574-8766.