PROVIDENCE – Fiscal 2020 cash collections declined by 2.7% from the previous year, to $3.9 billion, the R.I. Department of Revenue said on Tuesday.
The $108.5 million decline was largely driven by a downturn in collections of personal income tax and lottery transfer revenue attributed to the COVID-19 pandemic.
- Personal income tax collections totaled $1.2 billion, a 9.8% decline year over year.
- Lottery transfers declined 28.1% year over year, to $283.1 million. Revenue was impacted by the shutdown of Rhode Island’s two casinos due to the pandemic.
- Sales and use tax collection totaled $1.2 billion, a 3.3% increase year over year.
- Departmental receipts increased 1.7% year over year, to $424.2 million.
- General business tax collection totaled $482.7 million, an increase from $443.3 million one year prior.
The DOR also cited the other impacts of the pandemic as having effects on the cash collections of the state, such as the move of filing and payment deadlines to July 2020, the cancellation of major sporting events, the closure of nonessential retail and services businesses in March and the closure of restaurants. June reflected the beginning of Phase 2 of reopening in the state. Phase 3 commenced at the end of June.
Rhode Island tax collection in June totaled $413 million, a 3.7% decline year over year.
- The decline was driven by a sharp drop in personal income taxes and lottery transfer revenue.
- Personal income tax collections declined 8.5% year over year, to $124.2 million.
- Lottery Transfer revenue declined 66.6%, or $26.5 million, compared with June 2019 collections, to $13.3 million.
- Sales and use tax collection declined 3.6% year over year, to $98.1 million.
- Departmental receipts declined 3.1% year over year, to $38.3 million.
- General business tax collections in the state totaled $76.8 million, an increase from $71.2 million one year prior.
