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April 2019 Cash Collections Report available

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2019 Cash Collections Report for April 2019. The Cash Collections Report, which is issued monthly, 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 April are up 7.8 percent, or $238.9 million more than was received last fiscal year through April of 2018."

Total general revenues are bolstered by $140.0 million in general business tax receipts due in 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 $24.1 million of lottery revenues. Personal income tax cash collections are $37.3 million more on a fiscal year-to-date basis than the same period in FY 2018. The advancement of the lottery transfer and the higher personal income tax receipts help to offset the collection of $72.3 million in estate and transfer tax cash collections in FY 2018 through April which, to date, have reoccurred in much smaller amount(s) in FY 2019. FY 2019 through April sales and use tax cash collections were $56.1 million above the same period last fiscal year. It should be noted that sales and use tax cash collections through April generally correspond to taxable retail transactions made through March.

Notable cash collections items on an April fiscal year-to-date basis included: Total personal income tax cash collections of $1.15 billion, up $37.3 million or 3.3 percent year-to-date. o Personal income tax final payments increased by $54.2 million or 26.4 percent in fiscal year-to-date 2019 vs. fiscal year-to-date 2018. Last year at this time, personal income tax final payments were $28.5 million or 16.1 percent more than the same period in FY 2017. o Personal income tax withholding payments increased by $33.1 million or 3.3 percent year-to-date, a decrease from the 4.8 percent fiscal year to date growth rate recorded in April 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 $34.1 million, or 16.0 percent year-to-date. Personal income tax estimated payments through April of FY 2018 were $26.8 million, or 14.4 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 $15.8 million or 5.4 percent more than last fiscal year through April when personal income tax refunds and adjustment were $13.1 million or 4.7 percent more than the prior year. Year-to-date April 2019 sales and use tax cash collections are up 6.5 percent in comparison to FY 2018 through April with total non-motor vehicle receipts $49.1 million more, meal and beverage receipts 0.4 percent more and motor vehicle sales and use tax receipts (i.e., Registry Receipts) $7.2 million more than the prior year. All other general revenue sources cash collections through April are up $67.8 million relative to the same period last fiscal year. This increase reflects sharply higher business corporation, public utilities gross earnings, insurance company gross premiums, and bank deposits tax cash collections due to 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 FY 2019 year-to-date. Fiscal year-to-date through April 2019 departmental receipts cash collections are $30.0 million, or 9.1 percent, more than in FY 2018 through April due in large part to increased FY 2018 hospital licensing fee payments received in July 2018 of $13.5 million and increased securities registration fees and insurance claims adjuster license fees of $10.0 million combined. These latter two items were subject to fee increases in FY 2019. The lottery transfer in the new fiscal year reflects transfers of $320.0 million in FY 2019 through April. This transfer amount includes transfers from gaming activity in July through March 2019. In FY 2018 through April, cash generated by gaming activity in July through March 2018 were transferred to the general fund.

Notable month of April cash collections items included: Increased April 2019 personal income tax cash collections of $53.1 million, 30.2 percent more than April 2018. o The increase in April personal income tax cash collections is overwhelmingly attributable to increased final payments of $45.5 million, or 33.0 percent, with support from increased withholding tax payments of $5.7 million, or 6.1 percent, and increased estimated payments of $1.6 million, or 5.3 percent. April 2019 sales and use tax cash collections were up $8.2 million relative to April 2018, or 9.7 percent. The year-over-year growth in sales and use taxes received from sales activity other than motor vehicle purchases of 7.7 percent include an increase in sales tax receipts from meals and beverages prepared for immediate consumption of 9.0 percent. In addition, April 2019 motor vehicle use tax receipts were 25.4 percent more than in April 2018. The April 2019 lottery transfer exceeded the April 2018 lottery transfer by 18.6 percent as strong performance in Tiverton Casino Hotel VLTs offset weakness in Twin River Casino Hotel VLTs. In both April 2019 and April 2018, the Division of Lottery transferred less receipts than would otherwise have been indicated to offset advanced transfer amounts made in March 2019 and March 2018. Lower departmental receipts cash collections of $1.9 million, a variance of 7.0 percent, in April 2019 vs. April 2018 resulted from the transfer to the fines and penalties category of departmental receipts in April 2018 of $5.2 million in interest on overdue taxes generated by the 2017 Tax Amnesty.

April 2018 figures include $81,112 received under the 2017 Tax Amnesty program. Net of April tax amnesty receipts, the growth rate is 22.2 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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