Revenue Assessment Report for May 2022 available

Published on Friday, June 24, 2022

Providence, R.I. -- The Rhode Island Department of Revenue (DOR) today released its FY 2022 Revenue Assessment Report for May 2022. The Revenue Assessment Report, which is issued monthly, compares the adjusted general revenues by revenue source on a fiscal year-to-date and monthly basis to expected general revenues by revenue source. Expected general revenues are estimated by DOR’s Office of Revenue Analysis (ORA) from the revised FY 2022 revenue estimates adopted at the May 2022 Revenue Estimating Conference (REC).[1] The methodology underlying ORA’s estimates is contained in the report. The principals of the May 2022 REC revised FY 2022 total general revenues up by $386.7 million. Details on the impact of the May 2022 REC by general revenue item can be found in the May 2022 Revenue Estimating Conference Report published on the Office of Management and Budget’s website.

May Year-To-Date Performance. On a fiscal year-to-date basis, the May 2022 report shows that adjusted total general revenues are ahead of expected total general revenues, based on the revised FY 2022 revenue estimates adopted at the May 2022 REC. Adjusted total general revenues were $70.5 million more than expected total general revenues, a variance of 1.6%. The results for selected general revenue categories for the fiscal year-to-date through May period are as follows:

  • Personal income tax revenues were up $38.3 million, or 2.2%, over expectations. Most of this strength came from personal income tax withholding, which was $26.7 million higher than expected. It is worth noting that May 2022 had five withholding tax due dates, while most months only have four.
  • Sales and use taxes revenues were $16.3 million more than expected, a variance of 1.2%.
  • Business corporation taxes revenues were $6.2 million ahead of the estimate, or 2.6%.
  • Estate and transfer tax revenues were $5.3 million, or 15.7%, more than expected.
  • Cigarette and other tobacco products (OTP) taxes were $3.0 million, or 2.3%, above expected revenues.
  • Lottery transfer revenues were $2.1 million more than expected, a difference of 0.7%.
  • Departmental receipts were $1.6 million, or 0.7%, less than expected.
  1. Fiscal Year-to-Date Summary of Findings:

May Monthly Performance. For the month of May, the report indicates that adjusted total general revenues were also $70.5 million above expectations, for a variance of 26.3%.  The change in methodology employed by ORA after the May REC effectively makes May the first month of the May 2022 through June 2022 reporting period so the nominal differences for the monthly revenues are the same as the nominal differences for the fiscal year-to-date revenues.  The variances, however, will be larger for the monthly revenues due to the smaller base from which the nominal differences are measured.

  1. Month of May Summary of Findings (See Chart 2):

The entire report can be found on the Department of Revenue’s website 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 paul.grimaldi@revenue.ri.gov or by phone at (401) 378-1080.

 

 

 


[1] Revenue Assessment Reports for the FY 2022 July through October period used the enacted FY 2022 revenue estimates included in the enacted budget as the basis of comparison. Reports for the November through April period used the revised FY 2022 revenue estimates adopted at the November 2021 Revenue Estimating Conference as the basis of comparison. The report for May uses the FY 2022 final revised revenue estimates adopted at the May 2022 Revenue Estimating Conference as the basis of comparison. The report for June will use the final enacted FY 2022 revenue estimates as the basis of comparison for preliminary FY 2022 audited revenues.

Rhode Island Revenue Assessment YTD Graph (May 2022)
Rhode Island Revenue Assessment Monthly Graphic