May 2021 Cash Collections Report available

Published on Friday, June 18, 2021

Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2021 Cash Collections Report for May 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 Acting Director Guillermo L. Tello, noted: "FY 2021 total general revenue cash collections through May are up 18.6%, or $644.7 million, from last fiscal year through May. This positive difference is due, to a great extent, from 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 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 12.8% more vs. last fiscal year through May. FY 2021 personal income tax cash collections through May were $396.1 million more than in FY 2020 with approximately $151.9 million the result of the delay in the filing and payment due dates to July 15, 2020 and increases in personal income tax estimated payments of $37.4 million and personal income tax final payments of $156.3 million above FY 2020 levels even after accounting for payments received in July 2020. The strong fiscal year-to-date over fiscal year-to-date growth rate experienced in May is also attributable to all other general revenues, which are $124.7 million more or $83.4 million after accounting for $41.3 million in deferred receipts received in July 2020. FY 2021sales and use tax cash collections through May were $152.5 million more than in FY 2020 through May as the economic impact of the COVID-19 pandemic began to take root in the Spring of 2020. Estate and transfer tax receipts, other miscellaneous revenues, and the lottery transfer were a combined $62.8 million less than in the same period last fiscal year."

Notable cash collections items on a May fiscal year-to-date basis included: • Total personal income tax cash collections of $1.514 billion, up $396.1 million or 35.4% year-to-date. The net increase in personal income tax cash collections breaks down as follows: o Personal income tax estimated payments up $66.4 million or 36.4% fiscal year-to-date, with $29.0 million in delayed payments received in July 2020; o Personal income tax final payments up $306.7 million or 259.6% fiscal year-to-date, with $142.2 million the result of the extension of the return due date from April 15, 2020 to July 15, 2020; o Personal income tax refunds and adjustments up $29.3 million or 8.8% year-to-date, with $19.3 million of refunds paid in July 2020 as a result of the extension of the return due date to July 15, 2020; and o Personal income tax withholding payments in year-to-date FY 2021 were $52.4 million more than in year-to-date FY 2020, or 1.7 percentage points, above the 2.9% growth rate recorded in FY 2020 for the same period. • Year-to-date FY 2021 sales and use tax cash collections up 14.4% in comparison to FY 2020 through May with total non-motor vehicle receipts $118.2 million higher, including $18 million less in meal and beverage receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were 34.1% more in FY 2021 year-to-date than the same period in FY 2020. • FY 2021 all other general revenue sources cash collections through May were up $124.7 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 received in July 2020 and attributable to the delay in the filing and payment due date for TY 2019 returns. o After accounting for the cash received in July 2020 that was attributable to the extension of the payment due dates and the filing deadline, FY 2021 year-to-date business corporation tax cash collections are $107.1 million more and insurance company gross premium tax cash collections are $10.1 million more than the same period last fiscal year. ? The jump in business corporation tax cash collections includes $98.2 million in payments received from pass-through entities on behalf of their shareholders in fiscal year-to-date FY 2021 vs. $45.7 million in the same period in FY 2020. o Also included in this surplus are higher cigarette and other tobacco products tax receipts of $20.6 million, $3.8 million more in realty transfer tax cash collections, $1.4 million in higher departmental cash receipts and a surplus of $1.2 million in alcohol excise tax payments. ? The increase in cigarette and other tobacco products tax cash collections may be related to Massachusetts' banning the sale of flavored tobacco, including menthol, effective June 1, 2020. o These surpluses in cash collections are offset by $21.8 million less in estate and transfer tax payments, $13.7 million less in financial institutions tax cash receipts, $14.4 million less in other miscellaneous revenues cash collections, a $5.4 million shortfall in the health care provider assessment; and $2.9 million less in public utilities gross earnings tax receipts. • The fiscal year-to-date through May 2021 lottery transfer is $30 million less than in FY 2020 through May with $48.2 million attributable to reduced revenues from the casino gaming at the Twin River and Tiverton Casino Hotels, offset by $16.8 million in increased revenues from traditional lottery products and remote sports betting. This shortfall includes the closing of the state's two casinos during the Stay at Home Order from March 14 - June 7, 2020 and the Pause of November 30 – December 20, 2020.

Cash collections for the month of May were up $184.2 million in FY 2021 vs. FY 2020, a difference of 92%. This overage was the result of an increase in May personal income tax cash collections of $106.2 million, robust growth in sales and use tax receipts, which were $40.5 million more in May 2021 vs. May 2020, and a bump in general business taxes cash receipts of $3.3 million. The increase in personal income tax cash receipts was likely due to the delay in the due date for final and estimated payments to July 2020 for TY 2019 returns. TY 2020 personal income tax returns and payments were due on May 17th in FY 2021. These surpluses were bolstered by an increase in the lottery transfer for May 2021 of $30.9 million vs. May 2020 when both the Twin River and Tiverton Casino Hotels were closed in response to the onset of the COVID-19 pandemic.

Notable cash collections items for the month of May included: • Total personal income tax cash collections of $188.4 million, up $106.2 million or 129.3% year-over-year. The net increase in personal income tax cash collections breaks down as follows: o Personal income tax estimated payments up $5 million or 88.8% year-over-year with this surplus augmented by $122.6 million more in final payments, a variance of 1,172.1%. In the case of final payments, the TY 2020 final return filing and payment due date was May 17, 2021 vs. July 15, 2020 for TY 2019 returns; o Personal income tax refunds and adjustments up $30.1 million or 119.4% year-over-year likely due to the delayed opening of tax filing season to February 12, 2021 for TY 2020 returns vs. January 27, 2020 for TY 2019 returns, which delayed the receipt of tax returns for which a refund was owed; and o Personal income tax withholding payments in May 2021, $8.7 million more than in May 2020, or 12.6 percentage points above the 3% growth rate recorded in May 2020. • May 2021 sales and use tax cash collections up 14.4% in comparison to May of FY 2020 with total non-motor vehicle receipts $33.1 million higher, including $9.8 million more in meal and beverage sales tax receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were up $7.8 million, or 139.2%, in May 2021 vs. May 2020. • The May 2021 lottery transfer is $30.9 million more than in May 2020 as revenues from casino gaming at the Twin River Casino Hotel and the Tiverton Casino Hotel are $26 million more than in May 2020 when both casinos were closed for the month of April. • All other general revenue sources cash collections in May 2021 were up $5.3 million relative to May 2020. This increase is primarily due to increased business corporation tax cash receipts of $3.9 million and cigarette and other tobacco product tax cash collections, which are up $1.6 million in May 2021. Departmental receipts cash collections and estate and transfer tax cash collections are up a combined $2.6 million year-over-year. • Finally, health care provider assessment and other miscellaneous revenues cash collections are down a combined $2.6 million in May 2021 vs. May 2020.

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/2021.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 [email protected] or by phone at (401) 378-1080.