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January 2019 Cash Collections Report available

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2019 Cash Collections Report for January 2019. 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 January are up 7.3 percent, or $160.5 million more than was received last fiscal year through January of 2018." Total general revenues are bolstered by $84.3 million in receipts due in large part to the change in the estimated payments schedule for business taxpayers. The increase in FY 2019 total general revenues also includes the contemporaneous transfer of $27.2 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 January were $15.4 million less than in FY 2018 through January while FY 2019 through January sales and use tax cash collections were $43.5 million above the same period last fiscal year. It should be noted that sales and use tax cash collections through January generally correspond to taxable retail transactions made through December.

Notable cash collections items on a January fiscal year-to-date basis included: Total personal income tax cash collections of $822.1 million, down $15.4 million or 1.8 percent year-to-date. o Personal income tax withholding payments increased by $22.5 million or 3.3 percent year-to-date, a decrease from the 4.3 percent fiscal year to date growth rate recorded in January 2018. FY 2019 year-to-date personal income tax withholding payments include the receipt of $5.8 million in large, infrequently occurring payment(s). o Personal income tax estimated payments are down $3.64 million, or 21.1 percent year-to-date. Personal income tax estimated payments through January of FY 2018 were $23.7 million, or 15.9 percent, more than the same period in FY 2017. This increase was likely attributable to the Tax Cuts and Jobs Act's provision that caps the amount of state and local taxes than can be deducted on a taxpayer's federal income tax return beginning in tax year 2018. o Personal income tax refunds and adjustments are $6.1 million or 11.9 percent more than last fiscal year through January when personal income tax refunds and adjustment were $13.9 million or 21.4 percent less than the prior year. Year-to-date January 2019 sales and use tax cash collections are up 6.9 percent in comparison to FY 2018 through January with total non-motor vehicle receipts $37.4 million more, meal and beverage receipts 1.3 percent more and motor vehicle sales and use tax receipts (i.e., Registry Receipts) $5.9 million more than the prior year. All other general revenue sources cash collections through January are up $60.3 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 January 2019 fiscal year-to-date. Fiscal year-to-date through January 2019 departmental receipts cash collections are $29.2 million, or 10.8 percent, more than in FY 2018 through January due in large part to increased FY 2018 hospital licensing fee payments received in July 2018 of $14.4 million. The lottery transfer in the new fiscal year reflects transfers of $223.0 million in FY 2019 through January. This transfer amount includes transfers from gaming activity in July through December 2018 as well as the contemporaneous transfer of January 2019 gaming receipts. In FY 2018 through January, only the cash generated by gaming activity in July through December 2017 was transferred to the general fund.

FY 2018 Year-to-Date figures include $9.1 million received under the 2017 Tax Amnesty program. Net of FY 2018 Year-to-Date tax amnesty receipts, the growth rate is 7.7 percent.

Notable month of January cash collections items included: Decreased January 2019 personal income tax cash collections of $4.6 million, 2.9 percent less than January 2018. o The decrease in January personal income tax cash collections is largely attributable to decreased estimated payments of $11.6 million, or 18.1 percent. This decrease is nearly twice as large as the increase in personal income tax estimated payments that occurred in January 2018 in response to the Tax Cuts and Jobs Act. o Both refunds and adjustments and final payments were comparable to the amounts posted in January 2018. January 2018 final payments include $2.1 million from the 2017 Tax Amnesty program. o Personal income tax withholding payments showed strong growth in January 2019 vs. January 2018, increasing by 7.2 percent or $7.4 million year-over-year, aided substantially by the receipt of large, infrequently occurring payment(s) of $5.8 million. Increased January 2019 sales and use tax cash collections of $10.5 million or 11.2 percent from January 2018 with growth in sales and use taxes received from sales activity other than motor vehicle purchases of 10.1 percent including an increase in sales tax receipts from meals and beverages prepared for immediate consumption of 12.7 percent. January 2018 sales and use tax payments include $529,824 from the 2017 Tax Amnesty program. The January 2019 lottery transfer exceeded the January 2018 lottery transfer by $5.5 million, or 19.4 percent aided by continued strong performance in video lottery terminal revenues at both Twin River Casino Hotel and Tiverton Casino Hotel. Lower departmental receipts cash collections of $4.4 million, a variance of 14.3 percent, in January 2019 vs. January 2018.

January 2018 figures include $4.7 million received under the 2017 Tax Amnesty program. Net of January tax amnesty receipts, the growth rate is 3.3 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/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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