Cash Collections Report for May 2022 available Published on Wednesday, June 29, 2022 Providence, R.I. -- The Rhode Island Department of Revenue released its FY 2022 Cash Collections Report for May 2022 today. 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 May are up 11.6%, or $477.2 million, from last fiscal year through May. This positive difference is largely due to strong personal income tax, sales and use tax, and business corporation tax cash collections and a strong rebound in lottery after the Twin River Casino Hotel and the Tiverton Casino Hotel operated with limited capacity in FY 2021.” 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 2022 cash collections are ahead of last fiscal year through May by 17.3%. FY 2022 sales and use tax cash collections through May were $152.0 million more than in FY 2021 through May. Fiscal year-to-date sales and use tax cash collections through May generally reflect retail sales activity that occurred in July through April of the fiscal year. FY 2022 personal income tax cash collections through April were $132.7 million more than in FY 2021. Approximately $154.2 million of personal income tax cash collections in FY 2021 through May were the result of the delay in the TY 2019 filing and payment due dates to July 15, 2020. Business corporation tax cash collections in FY 2022 through May were $110.3 million more than in the same period in FY 2021, and FY 2022 year-to-date other general business revenues cash collection, excluding business corporation tax cash collections, were $10.0 million above FY 2021 year-to-date amounts. The fiscal year-to-date lottery transfer cash receipts were $84.5 million more in FY 2022 than in FY 2021, reflective of the fact that the state’s two casinos have returned to full operations in FY 2022 vs. the limited capacity restrictions that were in place in FY 2021. Departmental receipts cash collections trailed the same period last fiscal year by $14.6 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 cigarette and other tobacco products (OTP) taxes were $9.1 million less in FY 2022 than in FY 2021. 1. May Fiscal Year-to-Date Summary of Findings: Notable cash collections items on a fiscal year-to-date basis included: Total personal income tax cash collections of $1.65 billion, up $132.7 million, or 8.8%, year-to-date. The net increase in personal income tax cash collections breaks down as follows: Personal income tax withholding payments in year-to-date FY 2022 were $141.0 million more than in year-to-date FY 2021, or 11.7%; Personal income tax final payments up $1.4 million, or 0.3%, fiscal year-to-date, with $144.6 million of final payments paid in FY 2021 year-to-date through May that were accrued back to FY 2020; Personal income tax estimated payments down $5.9 million, or 2.4%, fiscal year-to-date, with $29.0 million in TY 2019 delayed payments received in FY 2021 year-to-date through May; and Personal income tax refunds and adjustments up $3.7 million, or 1.0%, year-to-date, with $19.3 million of refunds paid in FY 2021 year-to-date through May that were accrued back to FY 2020. Year-to-date FY 2022 sales and use tax cash collections up 12.5% in comparison to FY 2021 through May with total non-motor vehicle receipts $91.0 million higher, including $56.2 million more in meal and beverage receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were 4.1% more in FY 2022 year-to-date than the same period in FY 2021. Fiscal year-to-date through May 2021 departmental receipts cash collections were $14.6 million, or 3.8%, less than in FY 2021 through May. FY 2021 hospital licensing fees, which were primarily paid in July 2021, were $26.7 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 fiscal year-to-date through May 2021 lottery transfer was $84.5 million more than in FY 2021 through May with $76.6 million of this increase attributable to increased revenues from the video lottery terminals located at the Twin River and Tiverton Casino Hotels. FY 2022 all other general revenue sources cash collections through May were up $122.6 million relative to the same period last fiscal year. This increase includes $110.3 million of business corporation tax receipts, $8.2 million of insurance company gross premiums tax cash collections, and $4.3 million of financial institutions tax cash payments that were included in FY 2021 and accrued back to FY 2020. 2. May 2022 Monthly Summary of Findings: Rhode Island Department of Revenue Director Guillermo L. Tello noted: “cash collections for the month of May were down $45.7 million in FY 2022 vs. FY 2021, a difference of ‑11.9%.” This decrease was largely the result of a decrease of $74.5 million in personal income tax compared to May 2021 due to the change in the TY 2020 personal income tax return filing and payment due date from April 15, 2021 to May 17, 2021. Notable cash collections items for the month of May included: Total personal income tax cash collections of $113.9 million, down $74.5 million, or 39.6%, year-over-year. The net decrease in personal income tax cash collections breaks down as follows: Personal income tax final payments down $122.8 million, or 92.3%, year-over-year; Personal income tax estimated payments down $3.6 million, or 33.8%, year-over-year; Personal income tax withholding payments in May 2022, $35.0 million more than in May 2021, or 35.0%; and Personal income tax refunds and adjustments down $16.9 million, or 30.5%, year-over-year. May FY 2022 sales and use tax cash collections up 10.5% in comparison to May of FY 2021 with total non-motor vehicle receipts $9.9 million higher, including $3.0 million more in meal and beverage sales tax receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were $53,466 more in May 2022 vs. May 2021. Year-over-year departmental receipts cash collections for May were $110,928, or 0.7%, less in FY 2022 compared to FY 2021. The May lottery transfer was $2.3 million, or 6.7%, more in FY 2022 compared to FY 2021. All other general revenue sources cash collections in May 2021 were up $14.4 million relative to May 2021. This increase is largely attributable to a significant increase in business corporation tax collections of $5.3 million and estate and transfer tax of $4.9 million. The full cash collections report can be found on the Department of Revenue’s web site at https://dor.ri.gov/fiscal-year-2022. Questions or comments on the report should be directed to Paul Grimaldi, Chief of Information and Public Relations by e-mail at firstname.lastname@example.org or by phone at (401) 378-1080.