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November 2019 Cash Collections Report available

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2020 Cash Collections Report for November 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 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 November are 6.7% higher than cash collections received last fiscal year through November, a difference of $109.9 million. The fiscal year-to-date growth rate is slightly below the 7.0% growth rate recorded in the FY 2019 through November period last year but is 0.8 percentage points above the 5.9% growth rate reported in October. FY 2020 personal income tax cash collections through November were $34.3 million more than in FY 2019 through November, while FY 2020 year-to-date sales and use tax cash collections were $38.1 million above the same period last fiscal year. Year-to-date FY 2020 estate and transfer tax cash collections continue to be supported by the receipt of $25.8 million in large infrequently occurring estate and transfer tax payment(s) in October and were $18.1 million more than last fiscal year."

Notable cash collections items on a November fiscal year-to-date basis included: Total personal income tax cash collections of $569.2 million, up 6.4% year-to-date. o Personal income tax withholding payments are up $20.7 million or 4.4% year-to-date, significantly stronger than the 1.8% fiscal 2019 year to date growth rate recorded in November 2018. o Personal income tax refunds and adjustments are $3.5 million, or 9.1%, more year-to-date, vs. the 5.4% increase recorded for the fiscal 2019 year-to-date period in November 2018. o Year-to-date estimated and final payments are a combined $17.2 million more in FY 2020 than in FY 2019, an increase of 17.0% fiscal year-to-date over fiscal year-to-date. This compares to an increase of 11.1% for the same period in FY 2019. Year-to-date November 2019 sales and use tax cash collections were up 8.1% in comparison to FY 2019 through November with total non-motor vehicle receipts $35.4 million more, meal and beverage receipts 8.4% more and motor vehicle sales and use tax receipts (i.e., Registry Receipts) $2.7 million more than the prior year. All other general revenue sources cash collections through November were up $30.0 million relative to last fiscal year. This increase reflects higher cash collections for estate and transfer taxes of $18.1 million and bolstered by $10.9 million more in insurance company gross premiums tax receipts vs. the same period last fiscal year. Fiscal year-to-date through November 2019 departmental receipts cash collections are $10.8 million, or 4.3% more than in FY 2019 through November 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 $152.4 million in FY 2020 through November vs. $155.8 million in FY 2019 through November. The FY 2020 year-to-date transfer includes the contemporaneous payment of $28.0 million and the traditional cash transfer for July through October gaming activity vs. a contemporaneous transfer of $25.3 million and the traditional cash transfer for July through October gaming activity in FY 2019 through November.

Notable month of November cash collections items included: Increased November 2019 personal income tax cash collections of $10.0 million, 10.1% above November 2018. This marks the second consecutive month in which personal income tax cash collections were $10.0 million more than the same month in the prior year. o The increase in November 2019 personal income tax cash collections is primarily attributable to an increase in withholding payments of $8.4 million or 8.7% and an increase in final payments of $2.6 million or 46.6% vs. November 2018. These increases are offset in part by an increase in refunds and adjustments of $1.7 million, a variance of 26.7%. Increased November 2019 sales and use tax cash collections of $6.8 million or 7.4% from November 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 8.6% coupled with an increase in sales tax collections on meals and beverages of 2.1% and a decrease in use tax collected on the registration of motor vehicles of $329,752. Total general business taxes for November are $6.7 million more than the same month last fiscal year, an increase of 120.3%. This increase was fueled in large part by insurance company gross premiums tax cash collections, which are $5.1 million more than in November of FY 2019, an increase of 458.3%, and include the redemption of $2.4 million of historic structures tax credit certificates. Decreased estate and transfer tax cash collections for November 2019 of $8.3 million vs. November 2018 due to the receipt of large, infrequently occurring payment(s) of $5.1 million in November 2018 and a decrease in year-over-year cigarette and other tobacco products excise tax cash collections of $3.1 million, or 22.8%. Higher departmental receipts cash collections in November 2019 of $4.3 million, a variance of 26.9%, due to $2.3 million in higher hospital licensing fee and banking license fee cash payments vs. November 2018. Increased lottery transfer cash collections for November 2019 vs. November 2018 of $2.1 million, a result of lower underpayments to the general fund in November 2019 vs. November 2018. 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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