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R.I. Department of Revenue releases June 2017 cash collections report

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2017 Cash Collections Report for June 2017. 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 2017 total general revenue cash collections through June are effectively the same as was received last fiscal year through June of 2016 with FY 2017 year-to-date cash collections $1.6 million more than for the same period in FY 2016." The growth rate for FY 2017 through June of 0.0 percent was only slightly lower than the 0.5 percent growth rate recorded in the previous year. FY 2017 personal income tax cash collections through June were $3.5 million less than in FY 2016 through June while FY 2017 through June sales and use tax cash collections were $24.0 million more than the same period in FY 2016. FY 2017 through June departmental receipts were greater than the same period in FY 2016 by a total of $15.4 million. The lottery transfer for the FY 2017 year-to-date period through June was $7.2 million less than the same period in FY 2016 while fiscal year-to-date through June 2017 all other revenues were $27.0 million less than the same period last year.

Notable cash collections items on a June fiscal year-to-date basis included: Total personal income tax cash collections of approximately $1.233 billion, down $3.5 million or 0.3 percent year-to-date. o Personal income tax withholding payments up $48.8 million or 4.5 percent year to date, more than the 2.5 percent fiscal year to date growth rate recorded in June 2016. This increase includes the receipt of a large, infrequently occurring payment of $3.3 million in August 2016 and $2.1 million of receipts that were posted to personal income tax withholding rather than insurance companies gross premiums taxes cash collections. Finally, FY 2017 had 53 Fridays vs. 52 Fridays in FY 2016. o Personal income tax final payments up $3.8 million, or 2.1 percent year-to-date, a continued reversal from the 10.0 percent fiscal year-to-date growth rate for the same period last fiscal year. o Personal income tax refunds and adjustments up $59.7 million year-to-date due primarily to the Division of Taxation working down the backlog of personal income tax refunds that resulted from enhanced fraud protocols and processing changes employed for the TY 2015 filing season and more rapid processing of TY 2016 income tax refunds. FY 2017 year-to-date June personal income tax refunds and adjustments tax cash collections also include a $2.1 million negative adjustment to account for receipts transferred from personal income tax withholding. Year-to-date June 2017 sales and use tax cash collections up $24.0 million, or 2.5 percent, from FY 2016 through June with the spread recorded in June 2017 fiscal year-to-date above the 1.4 percent growth recorded in June 2016 fiscal year-to-date. FY 2017 through June business corporations tax cash collections are $8.8 million more than for the same period last fiscal year and well above the $(17.0 million) difference between fiscal year-to-date periods recorded in June 2016. FY 2017 all other general revenue sources cash collections through June are down $27.0 million, including the $8.8 million overage in business corporations tax cash collections, relative to last fiscal year at this time. This shortfall is due in large part to fiscal year-to-date-over-fiscal year-to-date declines in estate and transfer tax, motor vehicle license and registration fees, public utilities gross earnings tax, and cigarette and other tobacco products excise tax cash collections. These fiscal year-to-date over fiscal year-to-date declines are offset by increases in financial institutions and insurance companies gross premiums tax cash collections. Fiscal year-to-date through June 2017 departmental receipts cash collections are $15.4 million, or 4.3 percent, more than in FY 2016 through June primarily due to increased FY 2016 hospital licensing fee payments received in July 2016. The year-to-date FY 2017 lottery transfer is down $7.2 million from the same period last fiscal year due in large part to a significant decline in traditional lottery games cash collections and substantive underperformance in Twin River video lottery terminals offset in part by improved results from Twin River's traditional table games and poker tables and Newport Grand's video lottery terminals.

Notable month of June cash collections items included: June 2017 personal income tax cash collections of $128.1 million, 16.1 percent above June 2016 and significantly more than the 11.7 percent growth rate recorded last year. o June 2017 personal income tax withholding payments cash collections were up 6.6 percent, or $5.7 million, versus June 2016. June 2017 had five Fridays vs. four Fridays in June 2016. o A year-over-year decrease in June 2017 personal income tax refunds and adjustments of $7.7 million. o June 2017 personal income tax estimated payments were up 8.6 percent or $3.6 million versus June 2016. June 2017 sales and use tax cash collections of $89.6 million are 4.4 percent above June 2016. The increase in June 2017 sales and use tax cash collections is due to nearly equal nominal increases in net Taxation and registry receipts. June 2017 business corporations tax cash collections are $9.1 million more than in June 2016 due in large part to a $12.6 million variance in refunds and adjustments year-over-year. Higher all other revenues cash collections than in June 2016 by a total of $20.3 million or 10.5 percent, including the $9.1 million overage in business corporations tax cash collections, $12.0 million more in insurance companies gross premiums tax cash receipts, and an increase of $11.0 million in motor vehicle license and registration fees. These increased cash collections are offset in part by lower estate and transfer tax and public utilities gross earnings tax cash collections. Decreased lottery transfer for June 2017 of nearly $814,515 or 1.3 percent versus June 2016. o A 1.0 percent year-over-year decrease in the transfer from the video lottery terminals at Twin River and a nearly 4.0 percent decrease in the cash flows from traditional lottery games were the main causes of the decline.

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/2017.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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