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September 2020 Cash Collections Report available

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2021 Cash Collections Report for September 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 Acting Director James E. Thorsen noted: "FY 2021 total general revenue cash collections through September are up 21.9%, or $241.4 million, from last fiscal year through September. 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 3.6%. FY 2021 personal income tax cash collections through September were $167.6 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 September of FY 2021 were $70.6 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 September were $19.7 million more than in FY 2020 through September. The lottery transfer for fiscal year-to-date 2021 was $19.2 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 a September fiscal year-to-date basis included: Total personal income tax cash collections of $514.8 million, up $167.6 million or 48.3% year-to-date. The net increase in personal income tax cash collections breaks down as follows: o Personal income tax estimated payments up $27.9 million or 42.8% fiscal year-to-date, with $29.0 million in delayed payments received in July 2020; o Personal income tax final payments up $147.4 million or 883.7% 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 $17.7 million or 69.4% 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 $9.9 million more than in year-to-date FY 2020, or 3.4%, below the 3.8% growth rate recorded in FY 2020 for the same period. Year-to-date FY 2021 sales and use tax cash collections up 6.2% in comparison to FY 2020 through September with total non-motor vehicle receipts $14.4 million higher, including $13.4 million less in meal and beverage receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were 16.2% more in FY 2021 year-to-date than the same period in FY 2020. FY 2020 all other general revenue sources cash collections through September were up $70.6 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 After accounting for the cash received in July 2020 that was attributable to the extension of the payment due dates and the filing deadline, FY 2021 year-to-date business corporation tax cash collections are $10.1 million more and insurance company gross premium tax cash collections are $7.1 million than the same period last fiscal year. o Also included in this surplus are excess cigarette and other tobacco products tax receipts of $7.4 million and $6.0 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 September 2020 lottery transfer $19.2 million less than in FY 2020 through September 2019 with $17.6 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 September included: Total personal income tax cash collections of $158.0 million, up $2.6 million or 1.7% year-over-year. The net increase in personal income tax cash collections breaks down as follows: o Personal income tax estimated payments down $1.3 million or 2.3% year-over-year with this shortfall offset by $1.3 million in higher final payments, a variance of 19.3%; o Personal income tax refunds and adjustments down 10.2% year-over-year; o Personal income tax withholding payments in September 2020, $1.8 million more than in September 2019, or 3.4 percentage points below the 5.2% growth rate recorded in FY 2020 for the same period. September FY 2021 sales and use tax cash collections up 3.5% in comparison to September of FY 2020 with total non-motor vehicle receipts $1.3 million higher, including $2.9 million less in meal and beverage sales tax receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were $5.1 million more in September 2020 vs. September 2019. September 2020 all other general revenue sources cash collections were up $9.5 million relative to September 2019. This increase is largely attributable to increases in business corporation tax, cigarette and other tobacco products excise tax, and insurance company gross premiums tax cash collections of $13.0 million offset by shortfalls in financial institutions tax and estate and transfer tax cash collections of a combined $3.6 million. Year-over-year departmental receipts cash collections for September are $2.2 million more in FY 2021 than they were in FY 2020 with the largest nominal gain in licenses and fees cash receipts. The September 2020 lottery transfer was $11.1 million less than the lottery transfer in September 2019 as reduced capacity at the state's two casinos continues to be a drag on performance with gross profit on video lottery terminal operations down $10.7 million year-over-year.

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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