Providence, R.I. — The Rhode Island Department of Revenue today released its FY 2021 Cash Collections Report for April 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 April are up 14.1%, or $460.6 million, from last fiscal year through April. This positive difference is due, to a great extent, from the extension of the 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 7.9% more vs. last fiscal year through April. FY 2021 personal income tax cash collections through April were $289.9 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 $32.4 million and personal income tax final payments of $33.7 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 April is also attributable to all other general revenues, which are $119.4 million more or $78.2 million after accounting for $41.3 million in deferred receipts received in July 2020. FY 2021sales and use tax cash collections through April were $112 million more than in FY 2020 through April 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 $97.1 million less than in the same period last fiscal year.”

Notable cash collections items on an April fiscal year-to-date basis included:
Total personal income tax cash collections of $1.325 billion, up $289.9 million or 28% year-to-date. The net increase in personal income tax cash collections breaks down as follows:
o Personal income tax estimated payments up $61.4 million or 34.8% fiscal year-to-date, with $29.0 million in delayed payments received in July 2020;
o Personal income tax final payments up $184.1 million or 171% fiscal year-to-date, with $142.2 million the result of the extension of the return due date to July 15, 2020;
o Personal income tax refunds and adjustments down less than $1.0 million or 0.2% 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 $43.7 million more than in year-to-date FY 2020, or 0.7 percentage points, above the 3.4% growth rate recorded in FY 2020 for the same period.
• Year-to-date FY 2021 sales and use tax cash collections up 11.4% in comparison to FY 2020 through April with total non-motor vehicle receipts $85.1 million higher, including $27.8 million less in meal and beverage receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were 28.8% more in FY 2021 year-to-date than the same period in FY 2020.
• FY 2021 all other general revenue sources cash collections through April were up $119.4 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 $103.2 million more and insurance company gross premium tax cash collections are $9.8 million more than the same period last fiscal year.
? The jump in business corporation tax cash collections includes $96.2 million in payments received from pass-through entities on behalf of their shareholders in fiscal year-to-date FY 2021 vs. $45.4 million in the same period in FY 2020.
o Also included in this surplus are higher cigarette and other tobacco products tax receipts of $19 million, $3.2 million more in realty transfer tax cash collections and a surplus of $1.5 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 $23.2 million less in estate and transfer tax payments, $14 million less in financial institutions tax cash receipts, $13 million less in other miscellaneous revenues cash collections, a $4.2 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 April 2021 lottery transfer is $60.9 million less than in FY 2020 through April with $74.2 million of this shortfall attributable to reduced revenues from the casino gaming at the Twin River and Tiverton Casino Hotels. 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 April were up $187 million in FY 2021 vs. FY 2020, a difference of 71.5%. This overage was the result of an increase in April personal income tax cash collections of $53.1 million, robust growth in sales and use tax receipts, which were $43.3 million more in April 2021 vs. April 2020, and a jump in general business taxes cash receipts of $52.7 million. The increase in general business taxes 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 general business tax returns and payments were due on their normal due date of April 15th (for calendar year tax filers) in FY 2021. These surpluses were bolstered by an increase in the lottery transfer for April 2021 of $33.5 million vs. April 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 April included:
• Total personal income tax cash collections of $130 million, up $53.1 million or 69.1% year-over-year. The net increase in personal income tax cash collections breaks down as follows:
o Personal income tax estimated payments up $26.9 million or 234.2% year-over-year with this surplus augmented by $34.1 million more in final payments, a variance of 159.7%;
o Personal income tax refunds and adjustments up $28.2 million or 55.7% 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; and
o Personal income tax withholding payments in April 2021, $20.3 million more than in April 2020, or 26.7 percentage points above the 5.2% growth rate recorded in April 2020.
• April 2021 sales and use tax cash collections up 53.1% in comparison to April of FY 2020 with total non-motor vehicle receipts $32.6 million higher, including $4.1 million more in meal and beverage sales tax receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were up $10.7 million, or 212.5%, in April 2021 vs. April 2020.
• All other general revenue sources cash collections in April 2021 were up $52 million relative to April 2020. This increase is primarily due to increased business corporation tax cash receipts of $42.2 million and insurance company gross premium tax cash collections, which are up $11.3 million in April 2021. Departmental receipts cash collections, cigarette and other tobacco products excise tax receipts and public utilities gross earnings tax cash collections are up a combined $10.7 million year-over-year.
• The April 2021 lottery transfer is $33.5 million more than in April 2020 as revenues from casino gaming at the Twin River Casino Hotel and the Tiverton Casino Hotel are $15.1 million more than in April 2020 when both casinos were closed from March 14 – March 31st and an advance payment of March gaming activity revenues of $13.6 million, which was made in March 2020 was not included in the April 2020 lottery transfer.
• Finally, estate and transfer tax, other miscellaneous revenues, and financial institutions tax cash collections are down a combined $7.9 million in April 2021 vs. April 2020.

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

Source link

Author: Editor
Editor represents multiple online news sites, including STL.News, RSSNews.Press and more. We believe that our "direct source news" concept helps provide accurate information to the public without bias. We want to help improve technology so the news is presented as it was intended to be.