Press Releases

 

Personal income tax collections outpacing FY2017

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2018 Cash Collections Report for January 2018. 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 January are up 7.6 percent, or $155.8 million more than was received last fiscal year through January of 2017. Included in the FY 2018 year-to-date through January figure are $9.1 million of tax and interest payments received from the 2017 Tax Amnesty Program. The sizeable increase in general revenue cash collections on a fiscal year-to-date basis is attributable to estate and transfer tax payments being $70.0 million more in FY 2018, personal income tax cash collections $64.8 million ahead of FY 2017, and sales and use tax receipts running $25.2 million higher in FY 2018.

The growth rate for FY 2018 through January of 7.6 percent (7.2 percent when adjusting for the inflow of tax and interest payments from the 2017 Tax Amnesty Program) is well above the 1.7 percent growth rate recorded in the FY 2017 through January period last year."

Notable cash collections items on a January fiscal year-to-date basis included: Total personal income tax cash collections of approximately $837.5 million, up $64.8 million or 8.4 percent year-to-date. o Personal income tax withholding payments up $28.1 million or 4.3 percent year-to-date, in spite of the fact that FY 2017 year-to-date through January personal income tax withholding payments included the receipt of large deposit(s) of $3.3 million. o Personal income tax refunds and adjustments were $13.9 million, or 21.4 percent, less than in FY 2017 year-to-date through January. Nearly 25 percent 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. In addition, FY 2017 through January refunds and adjustments include $9.3 million of refunds paid out in July and August 2016 that were accrued back to FY 2016. o Personal income tax final payments were down $877,071 through January of FY 2018, or 2.4 percent. FY 2018 year-to-date personal income tax final payments cash collections include $3.9 million in tax and interest payments from the 2017 Tax Amnesty program. o FY 2018 through January personal income tax estimated payments cash collections were $23.7 million more than in FY 2017 through January, a variance of 15.9 percent. It may be that personal income tax filers shifted estimated payments that were going to be made in January 2018 to December 2017 in response to the passage of the federal Tax Cuts and Jobs Act of 2017. Estimated payment vouchers postmarked in late December would have been received and deposited in January 2018. Year-to-date FY 2018 through January sales and use tax cash collections are up $25.2 million in comparison to FY 2017 through January with Net Taxation receipts $24.3 million more, or 4.5 percent, Registry Receipts $406,325 more, or 0.7 percent, and Providence Place Mall sales tax collections $509,297, or 6.0 percent, more than the prior year. FY 2018 through January Net Taxation receipts include $1.1 million of tax and interest payments realized from the 2017 Tax Amnesty Program. FY 2018 all other general revenue sources cash collections through January are up $63.0 million relative to last fiscal year at this time. This increase reflects higher estate and transfer tax cash collections of $70.0 million offset by lower insurance company gross premiums tax cash collections of $15.4 million and lower business corporation tax cash collections of $2.4 million. Included in the FY 2018 year-to-date through January figure are $2.5 million of tax and interest payments received from the 2017 Tax Amnesty Program. Fiscal year-to-date through January 2018 departmental receipts cash collections were $1.4 million, or 0.5 percent, more than in FY 2017 through January. Included in the FY 2018 year-to-date through January figure are $1.4 million of tax and interest payments received from the 2017 Tax Amnesty Program. The lottery transfer in FY 2018 year-to-date is $1.4 million more than in FY 2017 through January, a variance of 0.8 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.), offset by a decline in revenue from casino gaming activity at Twin River and Newport Grand.

Notable month of January cash collections items included: Increased January 2018 personal income tax cash collections of $17.9 million, 12.5 percent above January 2017. o The increase in January 2018 personal income tax cash collections was driven in part by an increase in estimated payments of $6.4 million perhaps reflecting a shift in January 2018 estimated payments to December 2017 as a result of the federal Tax Cuts and Jobs Act of 2017 (estimated payments postmarked at the end of December would be received and deposited in January 2018). o An increase in withholding payments of $5.7 million from the amount received in January 2017. o A decrease in refunds and adjustments payments of $4.5 million and an increase in final payments of $1.3 million which includes $2.0 million in tax and interest payments from the 2017 Tax Amnesty program. January 2018 business corporation tax cash collections were $4.6 million more than in January 2017, a variance of 1,085.8 percent. The January 2018 figure includes $368,372 in tax and interest payments from the 2017 Tax Amnesty program. Increased January 2018 sales and use tax cash collections of $2.8 million or 3.1 percent from January 2017 with Net Taxation cash collections $3.0 million more. Included in this amount is $529,824 of tax and interest payments generated by the 2017 Tax Amnesty. Higher cigarette and other tobacco products tax cash collections in January 2018 of $1.4 million, a 12.3 percent increase. January 2018 estate and transfer tax cash collections were $1.2 million more than in January 2017 and include $1.7 million of tax and interest payments generated by the 2017 Tax Amnesty. The lottery transfer for January 2018 was $328,071 less than in January 2017, a variance of 1.2 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.

Related links

Share this: