Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2018 Cash Collections Report for June 2018. 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.
Rhode Island Department of Revenue Director Mark A. Furcolo noted: "FY 2018 total general revenue cash collections through June are up 3.8 percent, or $137.4 million more than was received last fiscal year through June of 2017. Included in the FY 2018 year-to-date through June figure are $21.5 million of tax and interest payments received from the 2017 Tax Amnesty Program. The sizeable increase in general revenue cash collections on a fiscal year-to-date basis is in spite of the change in the estimated payments schedule for business corporation, financial institutions, insurance company gross premiums, bank deposits, and public utilities gross earnings taxpayers. For TY 2017 and earlier, these taxpayers were required to make estimated payments totaling 100 percent of their projected tax year liability by June of the current fiscal year. For TY 2018 and going forward, these taxpayers are required to make estimated payments totaling 50 percent of their projected tax year liability by June of the current fiscal year with the remaining 50 percent of estimated payments due by December of the following fiscal year.
The growth rate for FY 2018 through June of 3.8 percent (3.2 percent when adjusting for the inflow of tax and interest payments from the 2017 Tax Amnesty Program) remains substantively higher than the flat growth rate recorded in the FY 2017 through June period last year."
Notable cash collections items on a June fiscal year-to-date basis included: • Total personal income tax cash collections of approximately $1.329 billion, up $96.4 million or 7.8 percent year-to-date. o Personal income tax withholding payments up $52.1 million or 4.6 percent year-to-date, in spite of the fact that FY 2017 year-to-date through June personal income tax withholding payments included the receipt of large deposit(s) of $3.3 million. It should be noted that FY 2018 through June personal income tax withholding payments include $288,902 of tax receipts and $203,977 of interest payments from the 2017 Tax Amnesty program. The interest payments on overdue taxes generated by the 2017 Tax Amnesty program were transferred to departmental receipts. o Personal income tax refunds and adjustments were $13.2 million, or 4.1 percent, more than in FY 2017 year-to-date through June. FY 2017 through June refunds and adjustments include $9.3 million of refunds paid out in July and August 2016 that were accrued back to FY 2016 while FY 2018 through June refunds and adjustments include a transfer of $4.0 million to departmental receipts for interest on overdue taxes paid through the 2017 Tax Amnesty program. o Personal income tax final payments were up $29.8 million through June of FY 2018, or 15.9 percent. FY 2018 year-to-date personal income tax final payments cash collections include $10.7 million in tax and interest payments from the 2017 Tax Amnesty program. A total of $3.9 million of interest payments were transferred to departmental receipts in FY 2018. o FY 2018 through June personal income tax estimated payments cash collections were $27.8 million more than in FY 2017 through June, a variance of 11.9 percent. Based on the data through June, it appears that the increase in estimated payments is attributable to strong asset price appreciation in calendar year 2017 and expected strong non-withholding income growth in calendar year 2018. • Year-to-date FY 2018 through June sales and use tax cash collections are up $51.5 million in comparison to FY 2017 through June with Net Taxation receipts $48.8 million more, or 5.6 percent, Registry Receipts $1.9 million more, or 1.7 percent, and Providence Place Mall sales tax collections $744,245, or 5.4 percent, more than the prior year. FY 2018 through June Net Taxation receipts include $4.7 million of tax and interest payments realized from the 2017 Tax Amnesty Program. A total of $1.1 million of interest payments were transferred to departmental receipts in FY 2018. • FY 2018 all other general revenue sources cash collections through June are down $31.6 million relative to last fiscal year at this time. This decrease reflects lower business corporation, public utilities gross earnings, insurance company gross premiums, and bank deposits tax payments of $135.4 million in FY 2018 through June as a result of the change in the estimated payment schedule for these tax types offset by increased estate and transfer tax payments of $78.4 million. Included in the FY 2018 year-to-date through June figure for other general revenue sources are $5.5 million of tax and interest payments received from the 2017 Tax Amnesty Program. A total of $1.5 million of interest payments were transferred to departmental receipts in FY 2018. • Fiscal year-to-date through June 2018 departmental receipts cash collections are $15.0 million, or 4.0 percent, more than in FY 2017 through June. Included in the FY 2018 year-to-date through June figure are $6.66 million of tax and interest payments received from the 2017 Tax Amnesty Program. A total of $6.62 million of interest payments were transferred to departmental receipts from personal income taxes, business corporation taxes, sales and use taxes, and estate and transfer taxes in FY 2018. • The lottery transfer in FY 2018 year-to-date is $6.2 million more than in FY 2017 through June, a variance of 1.7 percent.
* FY 2018 YTD figures include $21.5 million in tax and interest payments received from the 2017 Tax Amnesty. Net of these payments, the growth rate is 3.2 percent.
Notable month of June cash collections items included: • June 2018 personal income tax cash collections decreased by $5.1 million, 4.0 percent from June 2017. o The decrease in June 2018 personal income tax cash collections was driven largely by an increase in refunds and adjustments of $9.5 million, offset by an increase in withholding payments of $5.2 million. • Increased June 2018 sales and use tax cash collections of $5.4 million or 6.0 percent from June 2017 with Net Taxation cash collections $6.6 million more and Registry Receipts $1.0 million less than in June 2017. • June 2018 all other general revenue sources cash collections were 31.3 percent less than in June 2017. In June 2017, business corporation, public utilities gross earnings, financial institutions, insurance company gross premiums and bank deposits taxpayers were required to make estimated payments equal to 60 percent of their expected TY 2017 liabilities. In June 2018, the comparable figure was 25 percent of their expected TY 2018 liability. • Higher departmental receipts cash collections in June 2018 of 6.6 percent from the same month last year. • The lottery transfer for June 2018 was $9.4 million less than in June 2017, a variance of 15.6 percent. This decline in the lottery transfer for June 2018 is due to the advancement of June lottery transfer payments into May 2018 at the request of the Office of the General Treasurer.
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/2018.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.