DOR: Revenue exceeds expectations in November, fiscal YTD

REVENUE EXCEEDED expectations on both a fiscal year and monthly basis in November, according to the state Department of Revenue, by 2 percent and 3.8 percent, respectively. / COURTESY R.I. DEPARTMENT OF REVENUE
REVENUE EXCEEDED expectations on both a fiscal year and monthly basis in November, according to the state Department of Revenue, by 2 percent and 3.8 percent, respectively. / COURTESY R.I. DEPARTMENT OF REVENUE

PROVIDENCE – Revenue exceeded expectations on both a fiscal year and monthly basis in November, according to the state Department of Revenue, by 2 percent and 3.8 percent, respectively.
Revenue totaled $1.26 billion in the first five months of the fiscal year, compared with $1.24 billion expected, led by gains in the personal income tax, other general revenue sources and lottery transfer, the DOR said Monday.
Fiscal year-to-date personal income tax collections were 3.6 percent higher than expected, while other general revenue sources grew 6 percent and lottery transfer climbed 1.5 percent. Sales and use tax, as well as departmental receipts, missed targets, however, declining two-tenths of a percentage point and 3.5 percent, respectively.
“Fiscal year-to-date adjusted total general revenues again exceeded expectations through November, in spite of the fact that expected revenues were revised up by $52.4 million at the November 2015 revenue estimating conference. This performance is really remarkable,” Acting Director of Revenue Marilyn S. McConaghy said in a statement.
She said personal income tax revenue exceeded expectations by nearly $17 million largely due to fiscal year-to-date refunds and adjustments coming in significantly below expected refunds and adjustments through November.
For the month of November alone, revenue exceeded expectations by nearly 4 percent, totaling $238.8 million, almost $9 million more than what was projected, the state agency said.
McConaghy said results were “strong,” noting that personal income tax revenue rose 11.1 percent to $94.7 million over what was expected, again driven by refunds and adjustments, which were nearly 70 percent below expectations for the month.
“This is likely due to the fact that taxpayers on extension did not qualify for refunds at the same rate as in past fiscal years,” McConaghy said.
Lottery transfer jumped 5.6 percent to $30.3 million over expected revenue of $28.7 million. The agency, in a press release, said it showed evidence of Rhode Island gaming facilities’ “continued resilience” despite gaming competition in nearly Massachusetts.
Departmental receipts plunged 41.7 percent to $7 million from $12 million expected. The decline reflected the timing in the transfer of uncashed refund checks and other checks issued by the state to unclaimed property, “an event that was anticipated to occur in June rather than November,” the release said.

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