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

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2019 Cash Collections Report for August 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 2019 total general revenue cash collections through August are up 2.4 percent, or $16.9 million more than was received last fiscal year through August of 2017. The growth rate for FY 2019 through August is below the 6.2 percent growth rate recorded in the FY 2018 through August period last year. The increase in FY 2019 total general revenues includes the contemporaneous transfer of $33.1 million of lottery revenues which helps to offset the receipt of nearly $59.0 million in estate and transfer tax cash collections in July 2017, which did not reoccur in July 2018. FY 2019 personal income tax cash collections through August were $1.1 million more than in FY 2018 through August and while FY 2019 through August sales and use tax cash collections were $15.1 million above the same period last fiscal year."

Notable cash collections items on an August fiscal year-to-date basis included: Total personal income tax cash collections of $187.4 million, up $1.1 million or 0.6 percent year-to-date. o Personal income tax withholding payments were down $3.6 million or 1.9 percent year-to-date, a decrease from the 3.7 percent fiscal year to date growth rate recorded in August 2017. o Personal income tax refunds and adjustments were down $4.3 million or 24.2 percent year-to-date, a larger decrease than the 14.3 percent growth rate recorded in August 2017. Year-to-date August 2018 sales and use tax cash collections were up 8.1 percent in comparison to FY 2018 through August with total non-motor vehicle receipts $11.7 million more, meal and beverage receipts 0.2 percent more and motor vehicle sales and use tax receipts (i.e., Registry Receipts) $3.3 million more than the prior year. All other general revenue sources cash collections through August were down $52.3 million relative to last fiscal year at this time. This decrease reflects lower estate and transfer tax cash collections in August 2018 fiscal year-to-date of $4.3 million versus $60.1 million in fiscal year-to-date through August 2017. Fiscal year-to-date through August 2018 departmental receipts cash collections are $20.3 million, or 11.5 percent, more than in FY 2018 through August primarily due to increased FY 2018 hospital licensing fee payments received in July 2018 of $15.7 million. The lottery transfer in the new fiscal year reflects transfers of $64.1 million in FY 2019 through August. These transfers consist of contemporaneous transfers of $33.1 million and the traditional cash transfer for July activity of $31.0 million. In FY 2018 through August, only the cash generated by gaming activity in July 2017 was transferred in August.

Notable month of August cash collections items included: Decreased August 2018 personal income tax cash collections of $11.0 million, 10.6 percent below August 2017. o The decrease in August 2018 personal income tax cash collections is entirely attributable to a large decrease in withholding payments of $12.1 million, a variance of 11.9 percent. The drop in August 2018 personal income tax withholding payments compared to August 2017 is substantially due to a timing difference in the receipt of these payments between the two periods. Increased August 2018 sales and use tax cash collections of $4.7 million or 4.9 percent from August 2017 with strong growth in sales and use taxes received from sales activity other than motor vehicle purchases and meals and beverages prepared for immediate consumption of 6.8 percent. The August 2018 lottery transfer exceeded the August 2017 lottery transfer by $1.7 million, or 5.4 percent, as a result of the advanced transfer of $33.1 million to the general fund in August, a transfer that would normally occur in September. Increased realty transfer tax cash collections for August 2018 of $3.3 million vs. August 2017 from the receipt of large, infrequently occurring payment(s). These increases were offset by lower departmental receipts cash collections of $1.2 million, a variance of 8.1 percent with this shortage attributable to the delayed recording of over $1.0 million in August 2018 receipts that were posted in September.

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/2019.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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