State meets expectations to start FY2015, but income tax falls short

DESPITE SOME SIGNIFICANT VARIANCES, state revenue for the first month of fiscal year 2015 came slightly more than one-tenth of 1 percent below estimates. / COURTESY R.I. DEPARTMENT OF REVENUE
DESPITE SOME SIGNIFICANT VARIANCES, state revenue for the first month of fiscal year 2015 came slightly more than one-tenth of 1 percent below estimates. / COURTESY R.I. DEPARTMENT OF REVENUE

PROVIDENCE – The R.I. Department of Revenue collected $297,158 more than expected in July, resulting in a monthly total general revenue surplus of one-tenth of 1 percent compared with the state’s original revenue projections, the department reported Monday.
The department collected $203.5 million in general revenue in July, slightly more than the $203.3 million anticipated. Offset by increases in departmental receipts and other general revenue sources, personal income tax collections took in $73.5 million, 5 percent less than expected, the department said.
While overall revenue was in line with expectations, a fact R.I. Department of Revenue Director Rosemary Booth Gallogly welcomed, she described as “disconcerting” the fact that personal income tax withholding payments were less than expected revenue.
The Fiscal Year 2015 revenue assessment report, issued monthly, compares adjusted general revenue by source to expected general revenue. Expected revenue is estimated by the department’s Office of Revenue Analysis from estimates enacted in the Fiscal Year 2015 budget.
Other revenue for July included departmental receipts totals of $10.9 million, 6 percent greater than expectations of $10.3 million; sales and use tax totals of $87.3 million, about 1.3 percent more than a forecast of $86.2 million; and all other general revenue sources totaling $31.7 million, 8.7 percent greater than the expected total of $29.1 million.
“Sales and use tax adjusted revenues appear to be off to a good start,” Gallogly added, “which is comforting given that it is the second largest source of state general revenues.”
Lottery transfer calculations are not submitted until the end of August, said Paul L. Dion, chief of the Office of Revenue Analysis.
To see the full report, click HERE.

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