Providence, R.I. -- The Rhode Island Department of Revenue released its FY 2015 Cash Collections Report for January 2016 today. The Cash Collections Report, which is issued on a monthly basis, 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.
Acting Director of Revenue Marilyn S. McConaghy, Esq., noted that "FY 2016 total general revenue cash collections through January remain strong with fiscal year-to-date over fiscal year-to-date growth of 2.6 percent. This growth rate is in spite of the fact that departmental receipts cash collections and lottery transfer cash collections are down a combined $12.3 million on a year-to-date basis in FY 2016."
The decline in fiscal year-to-date over fiscal year-to-date lottery transfer cash collections is expected and is attributable to the onset of casino gaming in Massachusetts in June 2015.
The shortfall in departmental receipts cash collections in FY 2016 through December is due to a change in how checks issued by the state that remain uncashed are treated. Previously, these checks were deposited as general revenues in June of the fiscal year. Beginning in FY 2016, these checks are deemed to be unclaimed property and are moved from miscellaneous departmental receipts to the unclaimed property program.
The fiscal year-to-date over fiscal year-to-date growth rate for the personal income tax jumped to 3.8 percent primarily due to the fact that FY 2016 through January personal income tax refunds and adjustments cash collections are $16.8 million, or 41.9 percent, less than last fiscal year at this time. There appears to be a delay in the processing of personal income tax refunds and adjustments in FY 2016. FY 2016 through January personal income tax withholding cash collections are up 1.7 percent compared to the same period in FY 2015. Finally, FY 2015 year-to-date personal income tax payments include a $10.0 million infrequently occurring estimated payment that was received in December 2014. FY 2016 year-to-date all other general revenues cash collections growth continues to be driven by the business corporations tax which is $15.3 million more than this time last fiscal year.
"Fiscal Year 2016 total general revenue cash collections for January 2016 posted a solid gain of 2.8 percent after being down on a year-over-year basis for December 2015," said McConaghy. "Both personal income tax and sales and use tax cash collections posted substantive year-over-year growth rates in January but the real standout was the lottery transfer, which was 2 percent greater in January 2016 versus January 2015.
"This is the second month this fiscal year that the lottery transfer cash collections were positive year-over-year and in January 2016 there was no transfer of prior year revenues included in the cash collections. Twin River and the state have really done a good job in responding to gaming competition in nearby Massachusetts."
The decrease in all other revenues cash collections in January 2016 from January 2015 is due to decreases in business corporations tax cash collections of $4.3 million, motor vehicle operator's license and vehicle registration fees of $1.6 million and cigarettes tax cash collections of $1.3 million. The decline in motor vehicle operator's license and vehicle registration fees is due in large part to the receipt of $1.2 million in prior year International Registration Plan (IRP) fees in January 2015.
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/2016.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) 574-8766.