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November 2020 Cash Collections Report available

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2021 Cash Collections Report for November 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 James E. Thorsen noted: "FY 2021 total general revenue cash collections through November are up 9.1%, or $160.2 million, from last fiscal year through November. 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 behind last fiscal year through November by 2.3%. The adjusted negative fiscal year-to-date over fiscal year-to-date growth rate experienced in October is primarily due to the receipt of large estate and transfer tax payment(s) of $25.8 million and the advance of $28.0 million of November 2019 lottery receipts in FY 2020 through November. FY 2021 personal income tax cash collections through November were $160.3 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 November of FY 2021 were $32.3 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 November were $33.2 million more than in FY 2020 through November."

Notable cash collections items on an November fiscal year-to-date basis included: Total personal income tax cash collections of $729.5 million, up $160.3 million or 28.2% year-to-date. The net increase in personal income tax cash collections breaks down as follows: o Personal income tax estimated payments up $28.9 million or 37.4% fiscal year-to-date, with $29.0 million in delayed payments received in July 2020; o Personal income tax final payments up $143.6 million or 348.3% 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 $33.6 million or 78.7% 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 $21.3 million more than in year-to-date FY 2020, or 4.3%, just below the 4.4% growth rate recorded in FY 2020 for the same period. Year-to-date FY 2021 sales and use tax cash collections up 6.3% in comparison to FY 2020 through November with total non-motor vehicle receipts $24.1 million higher, including $19.2 million less in meal and beverage receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were 17.5% more in FY 2021 year-to-date than the same period in FY 2020. FY 2020 all other general revenue sources cash collections through November were up $32.3 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 $12.4 million more and insurance company gross premium tax cash collections are $2.2 million more than the same period last fiscal year. o Also included in this surplus are excess cigarette and other tobacco products tax receipts of $8.9 million and $22.0 million less 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 November 2020 lottery transfer is $60.5 million less than in FY 2020 through November 2019 with $32.7 million of this shortfall attributable to reduced revenues from the video lottery terminals located at the Twin River and Tiverton Casino Hotels and $28.0 million of this shortfall the result of the advancement of November 2019 lottery receipts, normally transferred in December, in year-to-date FY 2020.

Cash collections for the month of November were up less than $1.0 million in FY 2021 vs. FY 2020, a difference of 0.1%. This maintenance of the status quo was the result of substantive increases in personal income tax cash collections of $14.5 million, due mostly to a jump in withholding tax cash collections of $15.2 million, and continued strength in sales and use tax receipts, up $6.4 million, and cigarette excise and other tobacco products tax cash collections, $3.0 million more, in November 2020. These year-over-year increases were offset by shortfalls in other miscellaneous revenues cash collections of $10.5 million, insurance company gross premiums tax receipts of $5.5 million, the lottery transfer of $4.8 million, and business corporation tax cash collections of $1.0 million.

Notable cash collections items for the month of November included: Total personal income tax cash collections of $123.7 million, up $14.5 million or 13.3% year-over-year. The net increase in personal income tax cash collections breaks down as follows: o Personal income tax estimated payments up $1.4 million or 35.7% year-over-year with this surplus offset by $2.8 million less in final payments, a variance of 33.8%; o Personal income tax refunds and adjustments down $0.6 million or 7.4% year-over-year; o Personal income tax withholding payments in November 2020, $15.3 million more than in November 2019, or 5.8 percentage points above the 8.7% growth rate recorded in FY 2020 for the same period. November FY 2021 sales and use tax cash collections up 6.5% in comparison to November of FY 2020 with total non-motor vehicle receipts $4.1 million higher, including $3.4 million less in meal and beverage sales tax receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were $2.3 million more in November 2020 vs. November 2019. All other general revenue sources cash collections in November 2020 were down $16.0 million relative to November 2019. This decrease is largely attributable to a decrease in other miscellaneous revenues cash collections of $10.5 million in November 2020 as a result of the transfer to general revenues of $5.0 million from the Rhode Island Commerce Corporation's First Wave Closing Fund, $2.4 million in miscellaneous settlements, and $2.0 million from the closeout of the Providence Place Mall Debt Service Reserve Fund in November 2019. This negative differential is buttressed by shortfalls of $5.5 million in insurance company gross premiums tax receipts and $4.8 million in the lottery transfer. Year-over-year departmental receipts cash collections for November are less than 1.0% more in FY 2021 than they were in FY 2020.

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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