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State cash collections up 6 percent in FY18

PROVIDENCE, R.I. -- The Rhode Island Department of Revenue today released its FY 2018 Cash Collections Report for October 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 Mark A. Furcolo noted: "FY 2018 total general revenue cash collections through October are up 6.0 percent, or $72.3 million more than was received last fiscal year through October of 2016. Much of this increase can be attributed to the receipt of $67.2 million in estate and transfer tax cash collections year-to-date. The growth rate for FY 2018 through October is significantly above the 2.5 percent growth rate recorded in the FY 2017 through October period last year. FY 2018 personal income tax and sales and use tax cash collections through October were each $12.0 million more than in FY 2017 through October while FY 2018 through October insurance company gross premiums tax cash collections were $15.9 million below the same period last fiscal year."

Notable cash collections items on an October fiscal year-to-date basis included: Total personal income tax cash collections of approximately $417.3 million, up $12.2 million or 3.0 percent year-to-date. o Personal income tax withholding payments up $14.8 million or 4.2 percent year-to-date, in spite of the fact that FY 2017 year-to-date through October personal income tax withholding payments included the receipt of large deposit(s) of $3.3 million. o Personal income tax refunds and adjustments were $657,036 less, or 1.9 percent, year-to-date reflective of the fact that the Division of Taxation has caught up on the processing of current and prior tax year refunds owed. o Personal income tax final payments were down $3.1 million through October of FY 2018 or 11.9 percent. Year-to-date October 2017 sales and use tax cash collections are up $12.5 million in comparison to FY 2017 through October with Net Taxation receipts $12.3 million more and Providence Place Mall sales tax collections $280,967, or 6.4 percent, more than the prior year. FY 2018 all other general revenue sources cash collections through October are up $45.8 million relative to last fiscal year at this time. This increase reflects higher estate and transfer tax cash collections of $62.4 million offset by lower insurance company gross premiums tax cash collections of $15.9 million and lower business corporation tax cash collections of $2.4 million. Fiscal year-to-date through October 2017 departmental receipts cash collections were $1.2 million, or 0.6 percent, less than in FY 2017 through October primarily due to decreased FY 2017 hospital licensing fee payments received of $2.0 million. The lottery transfer in FY 2018 year-to-date is $3.0 million more than in FY 2017 through October, a variance of 3.3 percent. This increase is attributable in large part to an increase of $1.1 million in traditional lottery games (i.e., scratch tickets, Powerball, etc.) and an increase of $1.1 million in casino gaming activity at Twin River in Lincoln.

Notable month of October cash collections items included: Increased October 2017 personal income tax cash collections of $1.5 million, 1.6 percent above October 2016. o The increase in October 2017 personal income tax cash collections was driven in large part by an increase in withholding payments of $3.6 million from the amount received in October 2016 and an increase in estimated payments of $1.8 million from the amount received in October 2016. These overages were reduced by a shortfall of $2.1 million in final payments and $1.7 million more in refunds and adjustments year-over-year. Increased October 2017 sales and use tax cash collections of $5.9 million or 7.0 percent from October 2016 with Net Taxation cash collections $5.1 million more and Registry Receipts and Providence Place Mall sales tax collections a combined $771,949 more than October 2016. Higher estate and transfer tax cash collections in October 2017 of $9.3 million, a 312.4 percent increase and inclusive of large payment(s) totaling $9.2 million received in October 2017. The lottery transfer for October 2017 was $1.9 million more than in October 2016, a variance of 6.5 percent. October 2017 business corporation tax cash collections were $2.2 million less than in October 2016, a variance of 46.4 percent.

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/2018.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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