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June 2021 Cash Collections report available

Providence, R.I. --, The Rhode Island Department of Revenue today released its FY 2021 Cash Collections Report for June 2021. 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 Guillermo L. Tello, noted: "FY 2021 total general revenue cash collections through June were up 19.2%, or $743.9 million, from last fiscal year through June. This positive difference is due, in part, to the extension of the TY 2019 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.

FY 2021 personal income tax cash collections were $516.4 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 and increases in personal income tax estimated payments of $63.6 million and personal income tax final payments of $147.7 million above FY 2020 levels even after accounting for payments received in July 2020. In addition, $109.1 million of personal income tax payments from pass-through entities made on behalf of their shareholders were transferred to personal income tax in June 2021. In FY 2020, this transfer did not occur during the month of June and totaled $47.8 million.

The strong fiscal year-to-date over fiscal year-to-date growth rate experienced in FY 2021 is also attributable to sales and use tax cash collections, which were $178.5 million more than in FY 2020, or growth of 15.4%. FY 2021 all other general revenues were $23.6 million more on a cash basis in FY 2021 but were down $17.6 million compared to FY 2020 once the $41.3 million in deferred receipts received in July 2020 are accounted for. Estate and transfer tax receipts and other miscellaneous revenues were a combined $60.6 million less than in FY 2020 while cigarette and other tobacco products excise tax receipts, departmental receipts cash collections and the lottery transfer were a combine $45.3 million more in FY 2021 vs. FY 2020."

Notable cash collections items on a June fiscal year-to-date basis included: Total personal income tax cash collections of $1.758 billion, up $516.4 million or 41.6% year-to-date, including $109.1 million in personal income tax payments from pass-through entities made on behalf of their shareholders in FY 2021 but not including $47.8 million of these payments that were received in FY 2020 and not transferred to personal income tax in June 2020. The net increase in personal income tax cash collections breaks down as follows: o Personal income tax estimated payments up $92.5 million or 45.8% fiscal year-to-date, with $29.0 million in delayed payments received in July 2020; o Personal income tax final payments up $298.1 million or 221.6% fiscal year-to-date, with $142.2 million the result of the extension of the return due date from April 15, 2020 to July 15, 2020. No personal income tax payments from pass-through entities are included in these figures for either FY 2021 or FY 2020; o Personal income tax refunds and adjustments up $43.5 million or 12.1% year-to-date, with $19.3 million of refunds paid in July 2020 due to the extension of the return due date to July 15, 2020; and o Personal income tax withholding payments in year-to-date FY 2021 were $59.6 million more than in year-to-date FY 2020, or 1.2 percentage points, above the 3.5% growth rate recorded in FY 2020 for the same period. Year-to-date FY 2021 sales and use tax cash collections up 15.4% in comparison to FY 2020 through June with total non-motor vehicle receipts $138.2 million higher, including $9.4 million less in meal and beverage receipts. Motor vehicles use tax receipts (i.e., Registry Receipts) were 34.8% more in FY 2021 than in FY 2020. FY 2021 all other general revenue sources cash collections through June were up $23.6 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 received in July 2020 and attributable to the delay in the filing and payment due date for TY 2019 returns. 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 $26.7 million more and insurance company gross premium tax cash collections are $15.3 million more than the same period last fiscal year. ? The increase in business corporation tax cash collections includes the transfer of $109.1 million in personal income tax payments received from pass-through entities on behalf of their shareholders to personal income tax in FY 2021. In FY 2020, $47.8 million of the same payments remained in business corporation tax as of June. o Also included in the FY 2021 surplus are higher cigarette and other tobacco products tax receipts of $19.9 million, $4.2 million more in realty transfer tax cash collections, $7.1 million in higher departmental cash receipts and a surplus of $2.0 million in alcohol excise 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. o These surpluses in cash collections are offset by $42.3 million less in other miscellaneous revenues cash collections, $18.3 million less in estate and transfer tax payments, $12.5 million less in public utilities gross earnings tax cash receipts, $9.3 million less in financial institutions tax cash collections, and a $6.7 million shortfall in the health care provider assessment. The FY 2021 lottery transfer is $18.3 million more than in FY 2020 with $5.5 million less in revenues from casino gaming at the Twin River and Tiverton Casino Hotels, partially offset by $20.5 million in increased revenues from traditional lottery products and remote sports betting. The excess in lottery transfer cash collections for FY 2021 includes the closing of the state's two casinos during the Stay-at-Home Order from March 14 - June 7, 2020 and the Reopening Pause from November 30 December 20, 2020. Finally, the positive difference in FY 2021 cash collections relative to FY 2020 cash collections is supported by $4.2 million more in the unclaimed property transfer.

Cash collections for the month of June were up $99.2 million in FY 2021 vs. FY 2020, a difference of 24.1%. This overage was the result of an increase in June personal income tax cash collections of $120.3 million including the transfer of $109.1 million of pass-through entity personal income tax payments from business corporation tax, robust growth in sales and use tax receipts which were $26 million more in June 2021 vs. June 2020, and a decrease in general business taxes cash receipts of $81.3 million due to the transfer of pass-through entity personal income tax payments. An additional surplus was registered in the lottery transfer for June 2021 of $48.2 million vs. June 2020 when both the Twin River and Tiverton Casino Hotels were closed for the month of May and the first week of June.

Notable cash collections items for the month of June included: Total personal income tax cash collections of $244 million, up $120.3 million or 97.3% year-over-year and inclusive of the transfer of $109.1 million in total from business corporation tax for personal income tax payments made by passthrough entities on behalf of their shareholders. The net increase in personal income tax cash collections breaks down as follows: o Personal income tax estimated payments up $26.1 million or 131.3% year-over-year with this surplus partially offset by $8.6 million less in final payments, a variance of 52.4%. June 2021 final payments do not include the transfer of $10.9 million from business corporation tax for personal income tax payments made by passthrough entities on behalf of their shareholders; o Personal income tax refunds and adjustments up $14.1 million or 54.4% year-over-year likely due to the delayed opening of tax filing season to February 12, 2021 for TY 2020 returns vs. January 27, 2020 for TY 2019 returns which delayed the receipt of tax returns for which a refund was owed; and o Personal income tax withholding payments in June 2021, $7.2 million more than in June 2020, or 4.7 percentage points below the 11% growth rate recorded in June 2020. June 2021 sales and use tax cash collections up 26.8% in comparison to June of FY 2020 with total non-motor vehicle receipts $20.0 million higher, including $8.5 million more in meal and beverage sales tax receipts. Motor vehicles use tax receipts (i.e., Registry Receipts) were up $5 million, or 40%, in June 2021 vs. June 2020. The June 2021 lottery transfer is $48.2 million more than in June 2020 as revenues from casino gaming at the Twin River Casino Hotel and the Tiverton Casino Hotel are $42.7 million more than in June 2020 when both casinos were closed for the month of May and the first week of June. General business tax cash collections in June 2021 were down $81.3 million relative to June 2020. This decrease is primarily due to the transfer of $109.1 million from business corporation tax of personal income tax receipts paid by passthrough entities on behalf of their shareholders in June 2021 whereas in June 2020 $47.8 million of the same payments were not transferred until after the June monthly closing. In addition, June 2021 public utilities gross earnings tax cash collections were down $9.7 million vs. June 2020, however, this shortfall was offset by cash surpluses in financial institutions tax and insurance company gross premiums tax. Departmental receipts cash collections were $5.7 million more in June 2021 than in June 2020 while estate and transfer tax cash receipts were $3.6 million more year-over-year. Finally, June 2021 other miscellaneous revenues cash collections were $28 million less than in June 2020 and the health care provider assessment was $1.3 million less for the same period.

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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