Providence, R.I. -- The Rhode Island Department of Revenue yesterday released its FY 2018 Cash Collections Report for April 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 April are up 6.1 percent, or $176.3 million more than was received last fiscal year through April of 2017. Included in the FY 2018 year-to-date through April figure are $21.5 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 reflects the change in the estimated payments schedule for business corporation, financial institutions, insurance company gross premiums, bank deposits, and public utilities gross earnings taxpayers from a 40 percent of 2018 tax liability estimated payment due in March 2018 to a 25 percent of 2018 tax liability estimated payment due in April 2018.
The growth rate for FY 2018 through April of 6.1 percent (5.4 percent when adjusting for the inflow of tax and interest payments from the 2017 Tax Amnesty Program) remains substantively higher than the growth rate recorded in the FY 2017 through April period last year of 0.9 percent."
Notable cash collections items on an April fiscal year-to-date basis included: • Total personal income tax cash collections of approximately $1.115 billion, up $83.9 million or 8.1 percent year-to-date. o Personal income tax withholding payments up $41.8 million or 4.4 percent year-to-date, in spite of the fact that FY 2017 year-to-date through April personal income tax withholding payments included the receipt of large deposit(s) of $3.3 million. It should be noted that FY 2018 through April personal income tax withholding payments include $288,902 of tax receipts and $203,977 of interest payments from the 2017 Tax Amnesty program. A total of $203,349 of interest payments were transferred to departmental receipts in December and April. o Personal income tax refunds and adjustments were $13.1 million, or 4.7 percent, more than in FY 2017 year-to-date through April. FY 2017 through April refunds and adjustments include $9.3 million of refunds paid out in July and August 2016 that were accrued back to FY 2016 while FY 2018 through April refunds and adjustments include a transfer of $4.0 million to departmental receipts for interest on overdue taxes paid through the 2017 Tax Amnesty program. o Personal income tax final payments were up $28.5 million through April of FY 2018, or 16.1 percent. FY 2018 year-to-date personal income tax final payments cash collections include $10.6 million in tax and interest payments from the 2017 Tax Amnesty program. A total of $3.8 million of interest payments were transferred to departmental receipts in December and April. o FY 2018 through April personal income tax estimated payments cash collections were $26.8 million more than in FY 2017 through April, a variance of 14.4 percent. Based on the data through April, it appears that the increase in estimated payments is attributable to strong asset price appreciation in calendar year 2017 and expected strong non-withholding income growth in calendar year 2018. • Year-to-date FY 2018 through April sales and use tax cash collections are up $42.8 million in comparison to FY 2017 through April with Net Taxation receipts $40.6 million more, or 5.6 percent, Registry Receipts $1.7 million more, or 1.9 percent, and Providence Place Mall sales tax collections $640,905, or 5.6 percent, more than the prior year. FY 2018 through April Net Taxation receipts include $4.7 million of tax and interest payments realized from the 2017 Tax Amnesty Program. A total of $1.1 million of interest payments were transferred to departmental receipts in December and April. • FY 2018 all other general revenue sources cash collections through April are up $35.1 million relative to last fiscal year at this time. This increase reflects lower business corporation, public utilities gross earnings, insurance company gross premiums, and bank deposits tax payments of $50.7 million in FY 2018 through April offset by increased estate and transfer tax payments of $79.8 million. Included in the FY 2018 year-to-date through April figure for other general revenue sources are $5.5 million of tax and interest payments received from the 2017 Tax Amnesty Program. A total of $1.5 million of interest payments were transferred to departmental receipts in December and April. • Fiscal year-to-date through April 2018 departmental receipts cash collections are $12.4 million, or 3.9 percent, more than in FY 2017 through April. Included in the FY 2018 year-to-date through April figure are $6.65 million of tax and interest payments received from the 2017 Tax Amnesty Program. A total of $6.6 million of interest payments were transferred to departmental receipts in December and April. • The lottery transfer in FY 2018 year-to-date is $2.1 million more than in FY 2017 through April, a variance of 0.8 percent.
* FY 2018 YTD figures include $21.5 million in tax and interest payments received from the 2017 Tax Amnesty. Net of these payments, the growth rate is 5.4 percent.
Notable month of April cash collections items included: • April 2018 personal income tax cash collections increased by $12.2 million, 7.5 percent from April 2017. o The increase in April 2018 personal income tax cash collections was driven largely by an increase in final payments of $18.6 million, an increase in withholding payments of $6.2 million, and an increase in estimated payments of $3.9 million from the amounts received in April 2017. These increases were offset in part by increased refunds and adjustment payments in April 2018 of $16.5 million. April 2018 refunds and adjustments include a transfer of $3.0 million to departmental receipts for interest on overdue taxes paid through the 2017 Tax Amnesty program. • Increased April 2018 sales and use tax cash collections of $4.7 million or 5.9 percent from April 2017 with Net Taxation cash collections $4.6 million more. April 2018 Net Taxation cash collections include the transfer of $923,288 of 2017 Tax Amnesty interest payments to departmental receipts. • April 2018 all other general revenue sources cash collections are up $38.2 million relative to April 2017. This increase reflects lower business corporation tax payments of $6.4 million but higher public utilities gross earnings, insurance company gross premiums, and bank deposits tax payments of $37.7 million in April 2018. These variances reflect the change in the estimated tax payments schedules for business entities from a 40 percent payment of estimated 2018 tax liability due in March 2018 to a 25 percent payment of estimated 2018 tax liability due in April 2018. In addition, estate and transfer tax cash collections for April were $5.7 million greater than the same period last year. Included in the April 2018 figure for other general revenue sources is the transfer of $1.2 million in 2017 Tax Amnesty interest payments to departmental receipts. • Higher departmental receipts cash collections in April 2018 of $8.1 million, a 42.2 percent increase and inclusive of $5.2 million of interest payments received from the 2017 Tax Amnesty that were transferred to interest on overdue taxes in April. • The lottery transfer for April 2018 was $18.7 million less than in April 2017, a variance of 55.9 percent. This significant variance is due to the transfer of $20.1 million of lottery revenues in March that would normally have been transferred in April. The early transfer of lottery revenues was done at the request of the Office of the General Treasurer.
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.