DOR: September revenue beats expectations

PROVIDENCE – Total general revenue exceeded expected general revenue for the first three months of the fiscal year and also for the month of September alone, according to the monthly assessment report from the state Department of Revenue released on Tuesday.

The report stated that year-to-date, general revenue for September 2014 was $742.7 million, a 1 percent increase over expected revenue of $735.5 million for the same period. Departmental receipts had the largest increase at 6.1 percent, from $36.3 million in expected revenue to $38.5 million in actual revenue. Personal income tax revenue did not meet expectations, however, falling 0.8 percent below budget to $286.6 million.

Revenue estimates are based on the fiscal 2015 budget.

“The fact that fiscal year-to-date adjusted revenues are ahead of fiscal year-to-date expected revenues through the first quarter of the fiscal year is a welcome sign. While we are still trailing the estimate for year-to-date expected [fiscal year] 2015 enacted personal income tax revenues overall, adjusted year-to-date [fiscal year] 2015 personal income tax withholding payments revenues have pulled even with expected [fiscal year] 2015 year-to-date enacted personal income tax withholding payments revenues. This seems to indicate that the state’s labor market has strengthened recently after a bit of slowdown in July and August,” Director of Revenue Rosemary Booth Gallogly said in a statement.

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For the month of September, general revenue also exceeded expectations by increasing 2.2 percent to $296.7 million compared with the expected $290.2 million in general revenue. Personal income tax revenue in September rose six-tenths of a percentage point to $126.6 million from an estimated $125.9 million. Sales and use tax revenue rose almost 4 percent to $84.2 million compared with an expected $81 million. Lottery transfer payments increased 4.8 percent to $34.2 million from $32.6 million.

The September monthly results, Gallogly said, are “much better than the corrected August numbers especially when it comes to the personal income tax and the sales and use tax. Furthermore, the lottery transfer has done a 180 when compared to the corrected August report and hopefully this change portends well for the upcoming months.”

The report, which is issued on a monthly basis, compares the adjusted general revenues by revenue source on a fiscal year-to-date and monthly basis to expected general revenue by revenue source.

Read the entire report HERE.

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