DOR: Cash collections down in May

THE DEPARTMENT OF REVENUE reported that year-to-date cash collections in May were $38.27 million less than year-to-date collections in May 2016. /COURTESY R.I. DEPARTMENT OF REVENUE
THE DEPARTMENT OF REVENUE reported that year-to-date cash collections in May were $38.27 million less than year-to-date collections in May 2016. /COURTESY R.I. DEPARTMENT OF REVENUE

PROVIDENCE – May year-to-date cash collections are $38.27 million lower than one year ago, according to the R.I. Department of Revenue. Year-to-date collections in May totaled just over $3.12 billion, a 1.2 percent reduction from year-to-date collections in May 2016 ($3.16 billion).

Cash collections for the month of May decreased $11.23 million year over year, to $243.09 million, a 4.4 percent decline from May 2016 ($254.32 million).

Personal income tax accounted for $21.22 million of the year-to-date lag, totaling $1.1 billion by May, a 1.9 percent decrease from the year before. In the month of May, personal income tax collections increased $3.66 million year over year, to $73.56 million.

The largest gap in revenue shortfall year to date in May was classified as “all other revenues,” which accounts for a $47.37 million decrease year over year. This category entails cash collections from sources such as estate tax, excise tax, motor vehicle license and registration fees, public utilities gross earning tax and tobacco excise tax revenue. The all other revenues category accounted for $474.55 million year to date in May. This category of cash collection also saw a decrease year over year in the month of May, declining $18.34 million to $39.85 million.

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The DOR notes that this year’s decline in cash collection has much to do with a receipt of a large estate and transfer tax payment in 2016 that did not repeat in May of 2017. Estate and transfer taxes in May declined $38.96 million to $2.74 million. Estate tax year to date in May also declined sharply, from $63.67 million in 2016 to $22.2 million in 2017, a 65.1 percent decline.

May year-to-date sales and use tax collections provided the largest growth year over year, increasing $20.23 million to $907.9 million. Cash collections of sales and use tax also increased in the month of May year over year by $4.12 million to $80.71 million.

Departmental receipt cash collection rose 5.2 percent year-to-date ($333.58 million) in May from May 2016 ($317.09 million), a $16.49 million increase year over year. Departmental receipt cash collection in the month of May saw a smaller growth year over year with a 1.2 percent increase to $17.09 million in May 2017, a $200,358 increase year over year.

The report also noted that lottery transfer has declined this year, partly due to “substantive underperformance in Twin River video lottery terminals” and declines in traditional lottery games cash collections. Year-to-date collections of lottery transfer cash collections declined $6.4 million from fiscal year 2016 to $302.01 million. Monthly collections also decreased 2.6 percent from $32.74 million in May 2016 to $31.87 million in May 2017.

Chris Bergenheim is the PBN web editor.

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