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R.I. Department of Revenue releases June 2016 cash collections report

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2016 Cash Collections Report for June 2016. 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.

Rhode Island Department of Revenue Director Robert S. Hull noted: "FY 2016 total general revenue cash collections through June are up 0.5 percent, or $16.4 million more than was received last fiscal year through June of 2015. The growth rate for the year decreased by 160 basis points from the May 2016 report due to substantial declines in most business tax cash collections but especially for the business corporations tax and the financial institutions tax. These decreases were more than offset by increases in year-over-year personal income tax, sales and use tax, and estate and transfer tax cash collections that were experienced in May."

Notable cash collections items on a June fiscal year-to-date basis included: Total personal income tax cash collections of approximately $1.236 billion, up $20.8 million or 1.7 percent year-to-date. o Personal income tax withholding payments up $27.0 million or 2.5 percent year to date. For June 2015's year to date performance, personal income tax withholding payments cash collections were up $46.4 million or 4.6 percent. o Personal income tax refunds and adjustments down $9.6 million or 3.5 percent year-to-date due primarily to enhanced fraud protocols and processing changes employed by the Division of Taxation for the TY 2015 filing season. Year-to-date June 2016 sales and use tax cash collections $13.6 million more, or 1.4 percent, than FY 2015 through June in spite of the 2016 repeal of sales and use tax on electricity, natural gas, and heating fuels (to commercial buyers for non-manufacturing purposes). The Office of Revenue Analysis estimates that $24.4 million of sales and use tax revenue has been foregone from this change. FY 2016 lottery transfer cash collections down $11.7 million or 3.1 percent compared to prior year, primarily due to gaming competition in nearby Massachusetts. o Video lottery net terminal income at Twin River down $17.0 million but offset in part by video lottery net terminal income at Newport Grand up $545,047 o Traditional lottery games and Keno cash collections up by $4.1 million over prior year. o Net gaming revenue from traditional table games at Twin River up $2.3 million or 18.1 percent against prior year. o Increased lottery cash collections of $540,089 due to the addition of a new poker room at Twin River with 16 poker tables in December 2016.

Notable month of June cash collections items included: Decreased June 2016 personal income tax cash collections of $14.7 million, -11.7 percent below June 2015. o The decrease in June 2016 personal income tax cash collections was substantively driven by an increase of $8.7 million or 60.8 percent in personal income tax refunds and adjustments versus June 2015, although all components of the personal income tax were less in June 2016 than in lottery net terminal income at Newport Grand up $545,047 o Traditional lottery games and Keno cash collections up by $4.1 million over prior year. o Net gaming revenue from traditional table games at Twin River up $2.3 million or 18.1 percent against prior year. o Increased lottery cash collections of $540,089 due to the addition of a new poker room at Twin River with 16 poker tables in December 2016.

Notable month of June cash collections items included: Decreased June 2016 personal income tax cash collections of $14.7 million, -11.7 percent below June 2015. o The decrease in June 2016 personal income tax cash collections was substantively driven by an increase of $8.7 million or 60.8 percent in personal income tax refunds and adjustments versus June 2015, although all components of the personal income tax were less in June 2016 than in June 2015. Decreased June 2016 sales and use tax cash collections of $2.4 million, -2.7 percent below June 2015. Significantly lower all other revenues cash collections than in June 2015 by $26.1 million or -11.8 percent. The decrease was in spite of the receipt of an infrequently occurring large estate and transfer tax payment of $11.0 million in June 2016 which was not enough to offset an increase in business corporations tax refunds and adjustments of $10.6 million from June 2015 or shortfalls in both insurance companies gross premiums tax and financial institutions tax cash collections in June 2016. Decreased lottery transfer for May and June 2016 of $5.0 million, or -7.6 percent, from May and June 2015 as a result of increased competition from Massachusetts based gaming facilities. o The traditional games, the table games at Twin River, and the Newport Grand video lottery terminal components of the lottery transfer showed a total increase of $1.2 million in May and June 2016.

The full cash collections report can be found on the Department of Revenue's web site, www.dor.ri,gov, under the Revenue Analysis directory or at this link: http://www.dor.ri.gov/revenue-analysis/2016.php under the State Reports tab.

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.

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