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Monthly Cash Collections Report for June 2019 available

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2019 Cash Collections Report for June 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 for FY 2019 are up 5.4 percent, or $204.1 million more than was received in FY 2018." Total general revenues are bolstered by $137.9 million in general business tax receipts due in part to the change in the estimated payments schedule for business taxpayers. Personal income tax cash collections are $47.3 million more for FY 2019 than in FY 2018 while sales and use tax cash collections are $71.2 million greater in FY 2019 than in FY 2018, a growth rate of 6.8 percent. The $118.5 million increase in personal income tax and sales and use tax cash collections fir FY 2019 more than offset the collection of $72.3 million in estate and transfer tax cash collections in FY 2018. Both departmental receipts cash collections and the lottery transfer are up in FY 2019 over FY 2018 with departmental receipts $32.4 million higher and the lottery transfer $25.4 million greater. The lottery transfer reflects the performance of the Tiverton Casino Hotel, which generated $27.3 million more in video lottery terminal (VLT) receipts for the state from September to June than Newport Grand did for the same period in FY 2018.

Notable cash collections items for FY 2019 include: Total personal income tax cash collections of $1.38 billion, up $47.3 million or 3.6 percent from FY 2018. o Personal income tax final payments increased by $54.8 million or 25.2 percent in FY 2019 vs. FY 2018. FY 2018 personal income tax final payments were $29.8 million more than in FY 2017, a variance of 15.9%, and included $6.8 million of tax amnesty receipts. o Personal income tax withholding payments increased by $30.9 million or 2.6% in FY 2019, a decrease from the 4.6% growth rate recorded for FY 2018. FY 2019 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 $29.5 million, or 15.7% for FY 2019. Personal income tax estimated payments for FY 2018 were $27.8 million, or 11.9%, more than in FY 2017. The FY 2018 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 $8.8 million or 2.6% more in FY 2019 than in FY 2018 when personal income tax refunds and adjustment were $13.2 million or 4.1% more than in FY 2017. FY 2019 sales and use tax cash collections are up 6.8% in comparison to FY 2018 with total non-motor vehicle receipts $64.7 million more, meal and beverage receipts 0.8% more and motor vehicle sales and use tax receipts (i.e., Registry Receipts) $6.5 million more than the prior year. All other general revenue sources cash collections for FY 2019 are up $27.8 million relative to FY 2018. 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, cigarette and other tobacco products tax, and other miscellaneous revenues cash collections for FY 2019. FY 2019 departmental receipts cash collections are $32.4 million, or 8.4%, more than in FY 2018 due in large part to increased FY 2018 hospital licensing fee payments received in July 2018 of $12.8 million and increased securities registration fees and insurance claims adjuster license fees of $12.3 million combined. These latter two items were subject to fee increases in FY 2019. The lottery transfer reflects transfers of $393.8 million in FY 2019. In FY 2018, the lottery transfer was $368.4 million.

Notable month of June cash collections items included: Higher June 2019 personal income tax cash collections of $12.8 million, 10.4% more than June 2018. o The increase in June personal income tax cash collections is spread across all components with estimated payments greater by $4.7 million, withholding tax payments up by $4.4 million, final payments ahead by 4.0%, and refunds and adjustments lower by $3.5 million, or 13.9%. June 2019 sales and use tax cash collections were up $6.8 million relative to June 2018, or 7.2%. The year-over-year growth in sales and use taxes received from sales activity other than motor vehicle purchases of 8.8% include a decrease in sales tax receipts from meals and beverages prepared for immediate consumption of 1.5%. In addition, June 2019 motor vehicle use tax receipts were 3.8% less than in June 2018. The June 2019 lottery transfer trailed the June 2018 lottery transfer by 21.7% due in large part to the contemporaneous transfer of $28.8 million in lottery receipts during the July 2018 through May 2019 period vs. $11.9 million in for the July 2017 through May 2018 period, a net decrease of $16.9 million between June of the two fiscal years. Contemporaneous transfers of lottery receipts are reconciled in the June lottery transfer. Strong performance in Tiverton Casino Hotel VLTs continued in June as cash collections were $2.9 million more than was generated at Newport Grand in June 2018. All other general revenues cash collections are $35.5 million less in June 2019 vs. June 2018, a variance of 24.1%. This decrease is primarily attributable to decreased motor vehicle license and registration fee cash collections of $11.5 million or 99.3%, other miscellaneous revenues cash collections of $11.4 million or 50.9% and decreased financial institutions tax cash collections of $10.4 million or 72.8%. The percentage of motor vehicle license and registration fees cash collections retained as general revenues was reduced from 40% to effectively 0% in FY 2019. The decline in other miscellaneous revenues cash collections is the result of fewer "scoops' being included in the FY 2019 budget vs. the FY 2018 budget. The fall in financial institutions tax cash collections is from a decrease in large payment(s) that were received in June 2018 but did not repeat in June 2019. These declines were reinforced by multimillion dollar decreases in cash collections for cigarette and other tobacco products, business corporation, public utilities gross earnings, and estate and transfer taxes in June 2019 vs. June 2018.

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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