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August 2021 Cash Collections Report available

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2022 Cash Collections Report for August 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 2022 total general revenue cash collections through August are down 14.9%, or $137.5 million, from last fiscal year through August. This negative difference is due in large 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 (FY 2021) that otherwise would have been paid in April through June 2020. After accounting for the receipt of TY 2019 tax payments in July 2020, FY 2022 cash collections are ahead of last fiscal year through August by 8.8%. FY 2022 personal income tax cash collections through August were $130.4 million less than in FY 2021 with approximately $151.9 million the result of the delay in the TY 2019 filing and payment due dates to July 15, 2020. All other general revenue cash collection through August FY 2022 were $30.3 million below the same period last fiscal year with $41.3 million attributable to the extension of TY 2019 return and payments due dates to July 15, 2020. FY 2022 sales and use tax cash collections through August were $31.2 million more than in FY 2021 through August. Departmental receipts cash collections trailed the same period last fiscal year by a combined $20.2 million with most of this shortfall attributable to the reduction in the hospital licensing fee rate to 5% for FY 2021 (prior fiscal year hospital licensing fee payments are received in July of the current fiscal year). The fiscal year-to-date lottery transfer cash receipts were $12 million more in FY 2021 than in FY 2020, reflective of the fact that the state's two casinos have returned to full operations in FY 2021 vs. the limited capacity restrictions that were in place in FY 2020."

Notable cash collections items on an August fiscal year-to-date basis included: Total personal income tax cash collections of $226.4 million, down $130.4 million or 36.5% year-to-date. The net decrease in personal income tax cash collections breaks down as follows: o Personal income tax estimated payments down $25 million or 63.2% fiscal year-to-date, with $29.0 million in TY 2019 delayed payments received in FY 2021 year-to-date through August; o Personal income tax final payments down $144.4 million or 92.6% fiscal year-to-date, with $142.2 million the result of the extension of the TY 2019 return due date to July 15, 2020; o Personal income tax refunds and adjustments down $18.8 million or 50.5% year-to-date, with $19.3 million of refunds paid in FY 2021 year-to-date through August that were accrued back to FY 2020; o Personal income tax withholding payments in year-to-date FY 2022 were $20.2 million more than in year-to-date FY 2021, a growth rate of 10.2%, ahead of the 4.3% growth rate recorded in FY 2021 for the same period. Year-to-date FY 2022 sales and use tax cash collections were up 13.5% in comparison to FY 2021 through August. Total non-motor vehicle sales and use tax collections were $45.1 million higher, including $15.1 million more in meal and beverage receipts. Motor vehicles use tax receipts (i.e., Registry Receipts) were 5% more in FY 2022 year-to-date than the same period in FY 2021. FY 2022 all other general revenue sources cash collections through August were down $30.3 million relative to last fiscal year through August. This decrease 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 TY 2019 tax payments that were received in year-to-date FY 2021 but accrued back to FY 2020. Fiscal year-to-date through August 2021 departmental receipts cash collections are $20.2 million, or 10.3%, less than in FY 2021 through August. FY 2021 hospital licensing fees, which were paid in July 2021 were $19.6 million less than FY 2020 hospital licensing fees that were received in July 2020 due in large part to a reduction in the hospital licensing fee rate from 6% to 5% for FY 2021. The FY 2022 lottery transfer year-to-date through August, reflecting July gaming activity, was $12 million more than in the same period in FY 2021 with increases in every lottery component. o Traditional lottery games were $665,557 more in FY 2022 through August than in FY 2021 for the same period. o The state's share of net terminal income generated by the video lottery terminals (VLTs) in operation at the Twin River and Tiverton Casino Hotels were $9.0 million above the same period in the prior year. o The transfer to the state from the table games operated at the two casinos was $883,123 more than in FY 2021 through August. o On-site and remote sports betting revenues were $1.5 million more in FY 2022 through August than in the same period in FY 2021.

Notable cash collections items for the month of August included: Total personal income tax cash collections of $126.4 million, up $25.1 million or 24.8% 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 $1.8 million or 15.8% 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 2021; o Personal income tax refunds and adjustments down $216,157 or 2.2% year-over-year; o Personal income tax withholding payments in August 2021 $23.1 million more than in August 2020, or 23.1%, above the 7.9% growth rate recorded in FY 2021 for the same period. August 2021 sales and use tax cash collections up 12.7% in comparison to August 2020 with total non-motor vehicle receipts $20.4 million higher, including $7.6 million more in meal and beverage sales tax receipts. Motor vehicles use tax receipts (i.e., Registry Receipts) were 16.4% more in August 2021 vs. August 2020. August 2021 all other general revenue sources cash collections were up $8.9 million relative to August 2020. This increase is largely attributable to increases in cash receipts for financial institutions tax, +$6.8 million, realty transfer tax, +$2.3 million, business corporation tax, +$2.2 million, and insurance company gross premiums tax, +1.8 million, offset by a $4.4 million decrease in estate and transfer tax cash collections. Year-over-year departmental receipts cash collections for August 2021 are 0.2% less than in August 2020. Because 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/2022.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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