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November report shows cash collections ahead of FY2018 by 7 percent

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2019 Cash Collections Report for November 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 November are up 7.0 percent, or $107.5 million more than was received last fiscal year through November of 2017." The growth rate for FY 2019 through November is bolstered by the change in the estimated payments schedule for business taxpayers. Effective January 1, 2018, business taxpayers make estimated tax payments on a quarterly basis in April, June, September, and December. Prior to January 1, 2018, these payments were made twice a year in April and June with 100 percent of the taxpayer's expected tax liability due by June. The increase in FY 2019 total general revenues also includes the contemporaneous transfer of $32.0 million of lottery revenues which helps to offset the receipt of nearly $67.2 million in estate and transfer tax cash collections in July and October 2017 which to date have reoccurred in much smaller amount(s) in FY 2019. FY 2019 personal income tax cash collections through November were $16.5 million more than in FY 2018 through November while FY 2019 through November sales and use tax cash collections were $26.4 million above the same period last fiscal year. It should be noted that sales and use tax cash collections through November generally correspond to taxable retail transactions made through October.

Notable cash collections items on a November fiscal year-to-date basis included: Total personal income tax cash collections of $534.8 million, up $16.5 million or 3.2 percent year-to-date. o Personal income tax withholding payments increased by $8.3 million or 1.8 percent year-to-date, a decrease from the 4.0 percent fiscal year to date growth rate recorded in November 2017. o Personal income tax estimated payments are up $4.2 million, or 6.5 percent year-to-date and personal income tax final payments are $5.9 million or 22.5 percent more than last fiscal year at this time. These increases are substantively larger than the negative growth rates reported for these components in November 2017. Year-to-date November 2018 sales and use tax cash collections are up 5.8 percent in comparison to FY 2018 through November with total non-motor vehicle receipts $22.5 million more, meal and beverage receipts 0.6 percent less and motor vehicle sales and use tax receipts (i.e., Registry Receipts) $3.9 million more than the prior year. All other general revenue sources cash collections through November are up $7.9 million relative to last fiscal year at this time. This increase reflects sharply higher business corporation, public utilities gross earnings, financial institutions, insurance company gross premiums, and bank deposits tax cash collections as a result of the change in the estimated payment schedule for business taxes offsetting lower estate and transfer tax, motor vehicle registration and license fee, and cigarette and other tobacco products tax cash collections in November 2018 fiscal year-to-date. Fiscal year-to-date through November 2018 departmental receipts cash collections are $24.7 million, or 11.0 percent, more than in FY 2018 through November due in large part to increased FY 2018 hospital licensing fee payments received in July 2018 of $15.1 million. The lottery transfer in the new fiscal year reflects transfers of $155.8 million in FY 2019 through November. This transfer amount includes transfers from gaming activity in July through October 2018 as well as the contemporaneous transfer of November 2018 gaming receipts. In FY 2018 through November, only the cash generated by gaming activity in July through October 2017 was transferred in November.

Notable month of November cash collections items included: Decreased November 2018 personal income tax cash collections of $1.9 million, 1.9 percent less than November 2017. o The decrease in November 2018 personal income tax cash collections is largely attributable to increased refunds and adjustments of $3.8 million, or 144.4 percent, and decreased estimated payments of $961,948, or 22.8 percent. o Personal income tax withholding payments showed minimal growth in November 2018 vs. November 2017, increasing by only 0.3 percent while final payments were up $2.7 million or 89.0 percent year-over-year. Increased November 2018 sales and use tax cash collections of $5.1 million or 5.9 percent from November 2017 with growth in sales and use taxes received from sales activity other than motor vehicle purchases of 7.5 percent including an increase in sales tax receipts from meals and beverages prepared for immediate consumption of 2.7 percent. The November 2018 lottery transfer lagged the November 2017 lottery transfer by $1.8 million, or 6.2 percent. Increased all other general revenues cash collections for November 2018 of $2.7 million vs. November 2017. Higher departmental receipts cash collections of $798,948 a variance of 5.3 percent, in November 2018 vs. November 2017.

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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