Press Releases

 

Personal income, sales/use tax collections ahead of fiscal 2017

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2018 Cash Collections Report for November 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 November are up 6.1 percent, or $88.9 million more than was received last fiscal year through November 2016. Much of this increase can be attributed to the receipt of $68.0 million more in estate and transfer tax cash collections year-to-date. The growth rate for FY 2018 through November is well above the 2.4 percent growth rate recorded in the FY 2017 through November period last year. FY 2018 personal income tax and sales and use tax cash collections through November were each at least $17.0 million more than in FY 2017 through November while FY 2018 through November insurance company gross premiums tax cash collections were $16.1 million below the same period last fiscal year."

Notable cash collections items on a November fiscal year-to-date basis included: Total personal income tax cash collections of approximately $518.4 million, up $17.1 million or 3.4 percent year-to-date. o Personal income tax withholding payments up $17.7 million or 4.0 percent year-to-date, in spite of the fact that FY 2017 year-to-date through November personal income tax withholding payments included the receipt of large deposit(s) of $3.3 million. o Personal income tax refunds and adjustments were $6.1 million, or 14.2 percent, less than in FY 2017 year-to-date through November. Over one-half of the favorable performance in refunds and adjustments is attributable to transfers of receipts from business corporation tax to correct for prior year filing errors by taxpayers. o Personal income tax final payments were down $4.4 million through November of FY 2018 or 14.5 percent while personal income tax estimated payments cash collections were $2.3 million less than in FY 2017 through November or 3.4 percent. Year-to-date FY 2018 through November sales and use tax cash collections are up $17.6 million in comparison to FY 2017 through November with Net Taxation receipts $16.6 million more, or 4.2 percent, Registry Receipts $728,497 more, or 1.6 percent, and Providence Place Mall sales tax collections $202,921, or 3.7 percent, more than the prior year. FY 2018 all other general revenue sources cash collections through November are up $50.9 million relative to last fiscal year at this time. This increase reflects higher estate and transfer tax cash collections of $68.0 million offset by lower insurance company gross premiums tax cash collections of $16.1 million and lower business corporation tax cash collections of $8.1 million. Fiscal year-to-date through November 2017 departmental receipts cash collections were $583,935, or 0.3 percent, more than in FY 2017 through November. The lottery transfer in FY 2018 year-to-date is $2.6 million more than in FY 2017 through November, a variance of 2.2 percent. This increase is attributable in large part to an increase of $1.0 million in traditional lottery games (i.e., scratch tickets, Powerball, etc.) and an increase of $809,011 in casino gaming activity at Twin River and Newport Grand.

Notable month of November cash collections items included: Increased November 2017 personal income tax cash collections of $5.0 million, 5.2 percent above November 2016. o The increase in November 2017 personal income tax cash collections was driven in large part by a decrease in refunds and adjustments payments of $5.5 million half of which is due to transfers of receipts from business corporation tax to correct for prior year filing errors by taxpayers and an increase in withholding payments of $2.9 million from the amount received in November 2016. o These increases were offset by decreases in estimated payments of $2.1 million and $1.3 million in final payments from the amounts received in November 2016. Increased November 2017 sales and use tax cash collections of $5.1 million or 6.2 percent from November 2016 with Net Taxation cash collections $4.3 million and Registry Receipts $681,087 more than November 2016. Higher estate and transfer tax cash collections in November 2017 of $5.6 million, a 439.7 percent increase. The lottery transfer for November 2017 was $385,968 less than in November 2016, a variance of 1.3 percent. November 2017 business corporation tax cash collections were $5.7 million less than in November 2016, a variance of 177.3 percent. This shortfall is attributable in large part to the transfer of $3.4 million from business corporation tax to personal income and financial institutions taxes to correct for taxpayer error in filing tax returns.

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.

Related links

Share this: