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R.I. Department of Revenue releases May 2018 cash collections report

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2018 Cash Collections Report for May 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 May are up 6.8 percent, or $211.2 million more than was received last fiscal year through May of 2017. Included in the FY 2018 year-to-date through May 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 May of 6.8 percent (6.1 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 May period last year of 1.2 percent."

Notable cash collections items on a May fiscal year-to-date basis included: Total personal income tax cash collections of approximately $1.206 billion, up $101.5 million or 9.2 percent year-to-date. o Personal income tax withholding payments up $46.9 million or 4.5 percent year-to-date, in spite of the fact that FY 2017 year-to-date through May personal income tax withholding payments included the receipt of large deposit(s) of $3.3 million. It should be noted that FY 2018 through May 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 $3.8 million, or 1.2 percent, more than in FY 2017 year-to-date through May. FY 2017 through May 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 May 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 $29.8 million through May of FY 2018, or 16.4 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 May personal income tax estimated payments cash collections were $28.6 million more than in FY 2017 through May, a variance of 15.1 percent. Based on the data through May, 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 May sales and use tax cash collections are up $46.1 million in comparison to FY 2017 through May with Net Taxation receipts $42.3 million more, or 5.3 percent, Registry Receipts $2.9 million more, or 3.0 percent, and Providence Place Mall sales tax collections $745,412, or 5.9 percent, more than the prior year. FY 2018 through May 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 May are up $35.5 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 $51.9 million in FY 2018 through May offset by increased estate and transfer tax payments of $78.9 million. Included in the FY 2018 year-to-date through May 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 May 2018 departmental receipts cash collections are $12.6 million, or 3.8 percent, more than in FY 2017 through May. Included in the FY 2018 year-to-date through May 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 $15.5 million more than in FY 2017 through May, a variance of 5.1 percent. This increase reflects the early transfer of $13.4 million to the general fund which would normally have been transferred in June 2018.

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 6.1 percent.

Notable month of May cash collections items included: May 2018 personal income tax cash collections increased by $17.6 million, 23.9 percent from May 2017. o The increase in May 2018 personal income tax cash collections was driven largely by a decrease in refunds and adjustments of $9.4 million, augmented by increases in withholding payments of $5.2 million, in estimated payments of $1.7 million, and in final payments of $1.4 million from the amounts received in May 2017. Increased May 2018 sales and use tax cash collections of $3.3 million or 4.1 percent from May 2017 with Net Taxation cash collections $1.7 million more and Registry Receipts $1.3 million more. May 2018 all other general revenue sources cash collections were 1.0 percent more than in May 2017. Higher departmental receipts cash collections in May 2018 of 0.9 percent from the same month last year. The lottery transfer for May 2018 was $13.4 million more than in May 2017, a variance of 42.1 percent. This significant variance is due to the transfer of $13.4 million of lottery revenues in May that would normally be transferred in June. 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.

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