DOR: August revenue outpaces budget estimate

PROVIDENCE – Rhode Island’s August revenue of $268.4 million outpaced fiscal 2018 budget estimates by 2.2 percent, or $5.8 million, according to a report from the R.I. Department of Revenue issued Monday.

The largest nominal increase for the month from budget estimates was personal income tax collection, which totaled $102.8 million and exceeded expectations by 5.9 percent, providing an additional $5.7 million in revenue. The personal income tax revenue influx was largely due to withholding revenue, which was $101.7 million in August, $6.1 million more than expected, an increase of 6.4 percent.

Business corporation taxes came in 77.3 percent below budget, falling $4 million from expected revenue to $1.2 million.

Sales and use tax collection also overperformed expectations, climbing $2.6 million in August to $95.6 million.

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Despite August’s increase versus the budget, year-to-date revenue is 1.2 percent behind the fiscal 2018 budget. Two months of collection into the fiscal year, revenue was reported to be $479.5 million, $5.7 million less than the $485.1 million the DOR planned for in its budget.

Corporation tax revenue, sales and use taxes, estate and transfer tax, and departmental receipts all fell short of expectations, with an increase in personal income tax collections versus the budget holding down the overall drop in revenue.

Chris Bergenheim is the PBN web editor.