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August 2020 Cash Collections report available

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2021 Cash Collections Report for August 2020. 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 2021 total general revenue cash collections through August are up 34.1%, or $234.6 million, from last fiscal year through August. This positive difference is due, to a great extent, from the extension of the tax filing and payment deadlines from April 15 and June 15, 2020 to July 15, 2020 for personal income and nearly all business taxes. In total, $201.3 million in cash receipts directly related to the delay in the filing and payment due dates to July 15, 2020 were received in July 2020 that otherwise would have been paid in April through June 2020. After accounting for the receipt of FY 2020 tax payments in July 2020, FY 2021 cash collections are ahead of last fiscal year through July by 4.8%. FY 2021 personal income tax cash collections through August were $165.1 million more than in FY 2020 with approximately $151.9 million the result of the delay in the filing and payment due dates to July 15, 2020. All other general revenue cash collection through August FY 2021 were $61.2 million above the same period last fiscal year with $41.3 million attributable to the extension of return and payments due dates to July 15, 2020. FY 2021sales and use tax cash collections through August were $16.1 million more than in FY 2020 through August. The lottery transfer for fiscal year-to-date 2021 was $8.1 million below fiscal year-to-date 2020, reflecting the reduced operating capacity at the Twin River and Tiverton Casino Hotels as a result of the COVID-19 pandemic."

Notable cash collections items on an August fiscal year-to-date basis included: Total personal income tax cash collections of $356.8 million, up $165.1 million or 86.1% year-to-date. The net increase in personal income tax cash collections breaks down as follows: o Personal income tax estimated payments up $29.2 million or 280.0% fiscal year-to-date, with $29.0 million in delayed payments received in July 2020; o Personal income tax final payments up $146.1 million or 1,495.9% fiscal year-to-date, with $142.2 million the result of the extension of the return due date to July 15, 2020; o Personal income tax refunds and adjustments up $18.4 million or 97.6% year-to-date, with $19.3 million of refunds paid in July 2020 also as a result of the extension of the return due date to July 15, 2020; o Personal income tax withholding payments in year-to-date FY 2021 were $8.2 million more than in year-to-date FY 2020, or 4.3%, above the 3.1% growth rate recorded in FY 2020 for the same period. Year-to-date FY 2021 sales and use tax cash collections up 7.5% in comparison to FY 2020 through August with total non-motor vehicle receipts $13.1 million higher, including $10.5 million less in meal and beverage receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were 14.8% more in FY 2021 year-to-date than the same period in FY 2020. FY 2020 all other general revenue sources cash collections through August were up $61.2 million relative to the same period last fiscal year. This increase includes $27.2 million of business corporation tax receipts, $13.7 million of insurance company gross premiums tax cash collections, and $347,200 of financial institutions tax cash payments that were accrued back to FY 2020. o Also included in this surplus are excess cigarette and other tobacco products tax receipts of $3.2 million and $7.4 million more in estate and transfer tax payments. The increase in cigarette and other tobacco products tax cash collections may be related to Massachusetts' banning the sale of flavored tobacco, including menthol, effective June 1, 2020. The fiscal year-to-date through August 2020 lottery transfer $8.1 million less than in FY 2020 through August 2019 with $6.9 million of this shortfall attributable to reduced revenues from the video lottery terminals located at the Twin River and Tiverton Casino Hotels.

Notable cash collections items for the month of August included: Total personal income tax cash collections of $101.3 million, up $5.5 million or 5.7% year-to-date. The net increase in personal income tax cash collections breaks down as follows: o Personal income tax estimated and final payments up a combined $2.2 million or 23.8% year-over-year with August 2020 personal income tax final payments including $921,655 of reimbursed historic structures tax credit redemptions vs. none in August 2019; o Personal income tax refunds and adjustments up $4.0 million or 66.6% year-over-year; o Personal income tax withholding payments in August 2020 $7.3 million more than in August 2019, or 7.9%, above the 3.4% growth rate recorded in FY 2020 for the same period. August FY 2021 sales and use tax cash collections up 5.9% in comparison to August of FY 2020 with total non-motor vehicle receipts $5.4 million higher, including $4.1 million less in meal and beverage sales tax receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were 8.2% more in August 2020 vs. August 2019. August 2020 all other general revenue sources cash collections were up $8.2 million relative to August 2019. This increase is largely attributable to increases estate and transfer tax cash collections of $5.2 million and higher insurance company gross premiums tax cash collections of $4.7 million offset in part by lower business corporation tax cash collections of $2.0 million. Year-over-year departmental receipts cash collections for August are $1.0 million less in FY 2021 than they were in FY 2020 with the largest nominal shortfalls in licenses and feels, fines and penalties and state government sales and services. Since August is the first month of the lottery transfer for the fiscal year, there is no difference between the fiscal year-to-date and the year-over-year results for this revenue item.

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/2021.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) 378-1080.

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