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October 2019 Cash Collections Report available

The Rhode Island Department of Revenue released its FY 2020 Cash Collections Report for October 2019 today. 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 deposits 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 2020 total general revenue cash collections through October are nearly 6.0% higher than cash collections received last fiscal year through October, a difference of $80.8 million. The fiscal year-to-date growth rate is below the 8.0% growth rate recorded in the FY 2019 through October period last year but is marked improvement from September's report when the comparable figures were 0.1% and 9.1%. Year-to-date FY 2020 cash collections are bolstered by the receipt of $25.8 million in large infrequently occurring estate and transfer tax payment(s) in October. FY 2020 personal income tax cash collections through October were $24.3 million more than in FY 2019 through October, while FY 2020 year-to-date sales and use tax cash collections were $21.3 million above the same period last fiscal year."

Notable cash collections items on an October fiscal year-to-date basis included: Total personal income tax cash collections of $460.0 million, up 5.6% year-to-date. o Personal income tax withholding payments are up $12.2 million or 3.3% year-to-date, an increase from the 2.2% fiscal year to date growth rate recorded in October 2018. o Personal income tax refunds and adjustments are $1.8 million, or 5.5%, more year-to-date, nearly the mirror opposite of the 5.4% decrease recorded for the fiscal year-to-date period in October 2018. o Year-to-date estimated and final payments are a combined $13.8 million more in FY 2020 than in FY 2019, an increase of 15.3% fiscal year-to-date over fiscal year-to-date. This compares to an increase of 10.0% for the same period in FY 2019. Year-to-date October 2019 sales and use tax cash collections were up 8.0% in comparison to FY 2019 through October with total non-motor vehicle receipts $28.2 million more, meal and beverage receipts 9.8% more and motor vehicle sales and use tax receipts (i.e., Registry Receipts) $3.1 million more than the prior year. All other general revenue sources cash collections through September were up $24.2 million relative to last fiscal year. This increase reflects higher cash collections for estate and transfer taxes of $26.4 million offset by a shortfall in general business taxes of less than $1.0 million. Fiscal year-to-date through October 2019 departmental receipts cash collections are $6.5 million, or 2.8% more than in FY 2019 through October primarily due to the transfer of settlement revenues to the general fund by the Office of the Attorney General and higher collections of interest and penalty on overdue taxes. The lottery transfer in the new fiscal year reflects transfers of $123.4 million in FY 2020 through October vs. $128.9 million in FY 2019 through October. Both the FY 2020 and the FY 2019 year-to-date transfers include the contemporaneous transfer of approximately $30.0 million and the traditional cash transfer for July through September gaming activity.

Notable month of October cash collections items included: Increased October 2019 personal income tax cash collections of $10.5 million, 10.3% above October 2018. o The increase in October 2019 personal income tax cash collections is primarily attributable to a decrease in refunds and adjustments of $5.4 million, a variance of 38.0%, and increased withholding and final payments of $4.2 million, a combined variance of 3.9%. It should be noted that each of the personal income tax components improved in October 2019 vs. October 2018. Increased October 2019 sales and use tax cash collections of $10.3 million or 11.0% from October 2018 with continued strong monthly growth in sales and use taxes received from sales activity other than motor vehicle purchases and meals and beverages prepared for immediate consumption of 12.7% coupled with increases in sales tax collections on meals and beverages of $3.7 million and motor vehicles of $982,181. Total general business taxes for October are $6.6 million less than the same month last fiscal year, a decrease of 48.3%. This decrease was fueled in large part by business corporation tax cash collections which are $6.2 million less than in October of 2019, a decrease of 72.8%. Increased estate and transfer tax cash collections for October 2019 of $24.6 million vs. October 2018 due to the receipt of large, infrequently occurring payment(s) of $25.8 million in October 2019. Higher departmental receipts cash collections in October 2019 of $11.3 million, a variance of 57.3% and an increase in year-over-year cigarette and other tobacco products excise tax cash collections of $3.0 million, or 28.9%. Increased lottery transfer cash collections for October 2019 vs. October 2018 of $28.6 million reflecting the contemporaneous advancement of $30.0 million of October gaming activities in FY 2020. Typically, the lottery transfer is for the prior month's gaming activity/

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/2020.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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