Providence, R.I. -- The Rhode Island Department of Revenue released its FY 2016 Cash Collections Report for April 2016 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.
"FY 2016 total general revenue cash collections through April are up 1.7 percent, or $47.2 million more than was received last fiscal year through April of 2015, noted Robert S. Hull, director of the Rhode Island Department of Revenue Director. "The growth rate for the year remained positive despite a drop in nearly all general revenues cash collections components for the month of April. "The month of April was driven by lower personal income tax and all other revenues cash collections on a year-over-year basis."
Notable cash collections items on an April fiscal year-to-date basis included: • Total personal income tax cash collections of approximately $1.056 billion, up $43.0 million or 4.2 percent year-to-date. o Personal income tax withholding payments up $25.7 million or 2.9 percent year to date. Similarly, for April 2015 year to date performance, personal income tax withholding payments cash collections were up $38.1 million or 4.5 percent. o Personal income tax refunds and adjustments down $33.8 million or 13.9 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 April 2016 sales and use tax cash collections of $18.6 million or 2.4 percent more than FY 2015 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 $20.9 million of sales and use tax revenue has been foregone from this change. • FY 2016 lottery transfer cash collections down $5.6 million or 2.0 percent compared to prior year, primarily due to gaming competition in nearby Massachusetts. o Video lottery net terminal income at Twin River down $10.2 million but offset in part by video lottery net terminal income at Newport Grand up $325,273 o Traditional lottery games and Keno cash collections up by $3.3 million over prior year. o Net gaming revenue from traditional table games at Twin River up $1.8 million or 19.8 percent against prior year. o Increased lottery cash collections of $311,019 due to the addition of a new poker room at Twin River with 16 poker tables in December 2016.
Notable month of April cash collections items included: • Decreased April 2016 personal income tax cash collections of $10.6 million, -5.4 percent below April 2015. o The decrease in April 2016 personal income tax cash collections was driven overwhelmingly by a decrease of $18.5 million or -12.8 percent in personal income tax final payments versus April 2015. • Lower all other revenues cash collections than in April 2015 by $6.5 million or -16.4 percent. The decline was the result of drops in cash collections for: o Business corporations taxes of $7.0 million or -50.2 percent from April 2015 due to a significant increase in refunds and adjustments of $5.8 million. o Estate and transfer taxes of $3.9 million or -117.1 percent from April 2015. • Decreased lottery transfer for April 2016 of $3.3 million, or -9.5 percent, less than April 2015 as a result of increased promotional activity by Massachusetts based gaming competitors. In April 2016, Plainridge Park Casino in Plainville, MA decreased its hold percentage on slot machines by 10 percent and thus increased its payout percentage to 92.58 percent. o Both the traditional games component and the table games components of the lottery transfer showed a total increase of $363,337 in April 2015.
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 email@example.com or by phone at (401) 574-8766.