Cash Collections Report for November 2021 available Published on Friday, December 24, 2021 Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2022 Cash Collections Report for November 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 November are up 1.5%, or $29.5 million, from last fiscal year through November”. This positive difference is largely due to healthy sales and use tax 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 2021 cash collections are ahead of last fiscal year through November by 13.4%. FY 2022 personal income tax cash collections through November were $104.0 million less than in FY 2021. Approximately $151.9 million of personal income tax cash collections in FY 2021 through October were the result of the delay in the TY 2019 filing and payment due dates to July 15, 2020. FY 2022 sales and use tax cash collections through November were $88.3 million more than in FY 2021 through November. Fiscal year to date sales and use tax cash collections through November generally reflect retail sales activity that occurred in July through October of the fiscal year. Departmental receipts cash collections trailed the same period last fiscal year by $21.2 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). FY 2022 year-to-date other general business revenues cash collection, excluding business corporation tax cash collections, are $2.6 million below FY 2021 year-to-date amounts while business corporation tax cash collections in FY 2022 through November are $23.7 million more than in the same period in FY 2021. The fiscal year-to-date lottery transfer cash receipts were $41.5 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. 1. November Fiscal Year-to-Date Summary of Findings: Notable cash collections items on a November fiscal year-to-date basis included: Total personal income tax cash collections of $625.4 million, down $104.0 million or 14.3% year-to-date. The net decrease in personal income tax cash collections breaks down as follows: Personal income tax estimated payments down $18.6 million or 17.5% fiscal year-to-date, with $29.0 million in TY 2019 delayed payments received in FY 2021 year-to-date through November; Personal income tax final payments down $142.4 million or 77.0% fiscal year-to-date, with $142.2 million the result of the extension of the TY 2019 return due date to July 15, 2020; Personal income tax refunds and adjustments up $10.8 million or 14.1% year-to-date, with $19.3 million of refunds paid in FY 2021 year-to-date through November that were accrued back to FY 2020; Personal income tax withholding payments in year-to-date FY 2022 were $46.2 million more than in year-to-date FY 2021, or 9.0%. Year-to-date FY 2022 sales and use tax cash collections up 15.9% in comparison to FY 2021 through November with total non-motor vehicle receipts $83.8 million higher, including $31.3 million more in meal and beverage receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were 7.4% more in FY 2022 year-to-date than the same period in FY 2021. FY 2022 all other general revenue sources cash collections through November were up $24.9 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 included in FY 2021 and accrued back to FY 2020. Fiscal year-to-date through November 2021 departmental receipts cash collections are $21.2 million, or 8.3%, less than in FY 2021 through November. FY 2021 hospital licensing fees, which were paid in July 2021 were $21.9 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 November 2021 lottery transfer is $41.5 million more than in FY 2021 through November 2020 with $33.4 million of this increase attributable to increased revenues from the video lottery terminals located at the Twin River and Tiverton Casino Hotels. 2. November 2021 Monthly Summary of Findings: Rhode Island Department of Revenue Director Guillermo L. Tello noted: “cash collections for the month of November were up $55.8 million in FY 2022 vs. FY 2021, a difference of 18.8%”. This increase was the result of continued strength in sales and use tax collections of $21.1 million, a significant increase in business corporation tax collections of $11.8 million in November 2021, and increases in personal income tax cash collections of $9.3 million, due mostly to a jump in withholding tax cash collections of $14.8 million . Notable cash collections items for the month of November included: Total personal income tax cash collections of $133.0 million, up $9.3 million or 7.5% year-over-year. The net increase in personal income tax cash collections breaks down as follows: Personal income tax estimated payments up $1.0 million or 19.0% year-over-year; Personal income tax final payments up $1.9 million or 34.0% year-over-year. November 2021 personal income tax final payments includes $109,206 of reimbursed historic structures tax credit redemptions vs. $1.0 million in November 2020; Personal income tax refunds and adjustments up $8.4 million or 109.6% year-over-year; Personal income tax withholding payments in November 2021, $14.8 million more than in November 2020, or 12.3%. November FY 2022 sales and use tax cash collections up 20.1% in comparison to November of FY 2021 with total non-motor vehicle receipts $19.1 million higher, including $6.2 million more in meal and beverage sales tax receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were $2.1 million more in November 2021 vs. November 2020. All other general revenue sources cash collections in November 2021 were up $17.6 million relative to November 2020. This increase is largely attributable to a significant increase in busines corporation tax collections of $11.8 million; a substantial increase in estate and transfer tax collections of $4.6 million; and a rise realty transfer tax collections of $608,538 million. Year-over-year departmental receipts cash collections for November are $275,054 less or 1.3% down in FY 2022 compared to FY 2021. 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