Providence, RI – The Rhode Island Treasury Department today released its Fiscal 2021 Cash Collection Report for May 2021. The monthly cash debit report compares the cash debits of the current financial year by revenue item for a business year to date and on a monthly basis to the cash debits of the previous business year by revenue item. The cash report does not make any adjustments to the timeliness of the receipt of income and gives the reader an insight into the country's payment flows over the course of the financial year.
Acting Director of the Rhode Island Treasury, Guillermo L. Tello, commented, “Total general cash receipts for FY2021 are up 18.6%, or $ 644.7 million, through May, compared to the last fiscal year ended May . This positive difference is in large part due to the extension of the TY 2019 tax return and payment deadlines from April 15 and June 15, 2020 to July 15, 2020 for personal income and almost all business taxes.
In total, cash proceeds of $ 201.3 million were received in July 2020, directly related to the delay in filing and payment deadlines until July 15, 2020, which otherwise would have been paid between April and June 2020. After taking into account the receipt of FY 2020 tax payments in July 2020, cash collections in FY 2021 are 12.8% more than in the last fiscal year up to May.
Income tax revenue for fiscal 2021 through May was $ 396.1 million more than fiscal 2020, with approximately $ 151.9 million being the result of the delay in filing and payment deadlines through July 15, 2020 and the Estimated income tax payments of $ 37.4 million and final income tax payments of $ 156.3 million were up from fiscal 2020 levels, even after factoring in payments received in July 2020. The strong year-over-year growth rate in May is also due to all other general revenue, which is $ 124.7 million or $ 83.4 million more after $ 41.3 million in deferred revenue in the July 2020 were taken into account. Fiscal year 2021 revenue and excise tax collection through May were $ 152.5 million more than fiscal 2020 through May due to the economic impact of the COVID-19 pandemic that began to take root in the spring of 2020. Income from inheritance and transfer taxes, other miscellaneous income, and lottery transfer combined totaled $ 62.8 million n less than the same period last year. "
Notable cash collection items in May of the fiscal year to date included:
• Total income tax revenue of $ 1.514 billion, up $ 396.1 million, or 35.4%, year-to-date. The net increase in income tax revenue is made up as follows:
o Estimated income tax payments increase $ 66.4 million, or 36.4%, over the fiscal year to date, with $ 29.0 million in late payments in July 2020;
o Final income tax payments increase $ 306.7 million, or 259.6%, since the current fiscal year, with $ 142.2 million being the result of the April 15, 2020, April 15, 2020 tax return extension. July 2020 are;
o Income tax refunds and adjustments increase $ 29.3 million, or 8.8% year-to-date, with $ 19.3 million in refunds paid in July 2020 due to the extension of the tax return due date to July 15, 2020 ; and
Withholding tax payments for income tax in 2021 to date were $ 52.4 million more than in 2020 so far, or 1.7 percentage points above the 2.9% growth rate recorded in fiscal 2020 for the same period.
• Sales and use tax revenue for the current fiscal year 2021 increased 14.4% compared to fiscal year 2020 through May, with total non-automotive vehicle revenues up $ 118.2 million, including $ 18 million less for food and drink receipts. Income from vehicle use tax (i.e. registration receipts) in the 2021 financial year was 34.1% higher in the year to date than in the same period in the 2020 financial year.
• For FY2021, cash collections from all other general revenue streams increased $ 124.7 million through May compared to the same period last year. That increase includes $ 27.2 million in business tax revenue, $ 13.7 million in gross premium tax revenue from insurance companies, and $ 347,200 in tax cash payments from financial institutions received in July 2020 and the delay in filing and due dates Payment for TY. 2019 returns.
o After accounting for cash received in July 2020 due to the extension of payment deadlines and filing deadline, corporate corporate income tax cash recoveries for fiscal year 2021 to date are $ 107.1 million and insurance companies gross premium tax receipts are $ 10.1 million Dollars more than in the same period last year.
? The increase in business tax cash collections includes $ 98.2 million in payments received by transit companies on behalf of their shareholders in the current fiscal year 2021, compared to $ 45.7 million in the same period in fiscal year 2020.
o Also included in this surplus are higher cigarette and other tobacco tax revenues of $ 20.6 million, an additional $ 3.8 million in real estate transfer tax receipts, $ 1.4 million on increased divisional cash receipts and a $ 1.2 million surplus in alcohol excise payments.
? The increase in tax revenue on cigarettes and other tobacco products could be related to Massachusetts banning the sale of flavored tobacco, including menthol, effective June 1, 2020.
o These cash collection surpluses are offset by $ 21.8 million less in inheritance and transfer tax payments, $ 13.7 million less in financial institution tax revenues, and $ 14.4 million less in other miscellaneous cash collection revenues, a Health care provider valuation deficit of $ 5.4 million, offset; and $ 2.9 million less in gross income tax revenue from public utilities.
• Lottery transfers for fiscal year ended May 2021 are $ 30 million less than fiscal year 2020 ended May, with $ 48.2 million attributable to lower revenues from casino games at the Twin River and Tiverton Casino Hotels through higher revenue of $ 16.8 million will be offset by traditional lottery products and remote sports betting. That deficit includes the closure of the state's two casinos during the Stay at Home Order March 14 through June 7, 2020 and the break from November 30 through December 20, 2020.
May cash collections increased $ 184.2 million in FY 2021 versus FY 2020, a 92% difference. That overshoot was the result of a $ 106.2 million increase in income tax revenue in May, robust sales and use tax revenue growth, which was $ 40.5 million higher in May 2021 than May 2020, and one General corporate tax revenue increase of $ 3.3 million. The increase in income tax revenue was likely due to the delay in the due date for the final and estimated payments to July 2020 for the TY 2019 returns. Income tax returns and payments TY 2020 were due on May 17th in FY 2021. Those surpluses were supported by a $ 30.9 million increase in lottery transfers for May 2021 from May 2020 when both the Twin River and Tiverton casino hotels closed in response to the COVID-19 outbreak -Pandemic.
Notable cash items for May included:
• Total income tax revenue of $ 188.4 million, an increase of $ 106.2 million or 129.3% year over year. The net increase in income tax revenue is made up as follows:
o Estimated income tax payments increase $ 5 million, or 88.8% year over year, with that excess increased by an additional $ 122.6 million in final payments, a difference of 1,172.1%. In the case of final payments, the final filing and payment date for the TY 2020 refund was May 17, 2021 versus July 15, 2020 for the TY 2019 returns;
o Income tax refunds and adjustments increase $ 30.1 million, or 119.4% year over year, likely due to the delayed opening of the tax returns season on February 12, 2021 for TY 2020 feedback, compared to January 27, 2020 for TY 2019- Feedback that delayed receipt of tax returns for which a refund was due; and
Withheld income tax payments in May 2021, $ 8.7 million more than May 2020, or 12.6 percentage points above the 3% growth rate recorded in May 2020.
• May 2021 sales and excise tax revenue increased 14.4% compared to May FY2020, with total non-automotive vehicle revenue increasing $ 33.1 million, including $ 9.8 million more sales tax revenue for food and beverages. Vehicle tax revenue (i.e., registration receipts) increased $ 7.8 million, or 139.2%, in May 2021 compared to May 2020.
• May 2021 lottery transfer is $ 30.9 million more than May 2020 as casino game revenues at the Twin River Casino Hotel and Tiverton Casino Hotel are $ 26 million more than in May 2020 than both casinos were closed for the month of April.
• Cash collections of all other general revenue streams in May 2021 increased $ 5.3 million from May 2020. This increase was primarily due to increased corporate tax revenue of $ 3.9 million and cash receipts from cigarettes and other tobacco products tax of $ 1.6 million in May 2021. The departments' cash receipts as well inheritance and transfer tax revenues combined increased $ 2.6 million year over year.
• Finally, the valuation of health care providers and other cash collections of other income in May 2021 decreased by a combined US $ 2.6 million compared to May 2020.
The full cash collection report can be found on the Treasury Department's website, www.dor.ri, gov, in the Revenue Analysis directory, or under the tab at this link: http://www.dor.ri.gov/revenue-analysis/ 2021.php Status reports.
Questions or comments about the report should be emailed to Paul [email protected] or by phone (401) 378-1080 to Paul Grimaldi, Head of Information and Public Relations.