The R.I. Department of Revenue Office of Revenue Analysis today released the June 2016 Cash Collections Report.

Monthly Cash Collections Report for June 2016

(Sept. 27, 2016) Providence, R.I. — The Rhode Island Department of Revenue today
released its FY 2016 Cash Collections Report for June 2016. The Cash Collections
Report, which is issued on a monthly basis, compares current fiscal year cash
collections by revenue item on a fiscal year-to-date and monthly basis to prior
fiscal year cash collections by revenue item. The cash collections report makes no
adjustments for the timeliness of the receipt of revenues and provides readers with
insight into the state’s cash flow over the course of the fiscal year.

Rhode Island Department of Revenue Director Robert S. Hull noted: “FY 2016 total
general revenue cash collections through June are up 0.5 percent, or $16.4 million
more than was received last fiscal year through June of 2015.
The growth rate for the year decreased by 160 basis points from the May 2016 report
due to substantial declines in most business tax cash collections but especially for
the business corporations tax and the financial institutions tax. These decreases
were more than offset by increases in year-over-year personal income tax, sales and
use tax, and estate and transfer tax cash collections that were experienced in May.”

Notable cash collections items on a June fiscal year-to-date basis included:
· Total personal income tax cash collections of approximately $1.236 billion,
up $20.8 million or 1.7 percent year-to-date.
o Personal income tax withholding payments up $27.0 million or 2.5 percent year to
date. For June 2015’s year to date performance, personal income tax withholding
payments cash collections were up $46.4 million or 4.6 percent.
o Personal income tax refunds and adjustments down $9.6 million or 3.5 percent
year-to-date due primarily to enhanced fraud protocols and processing changes
employed by the Division of Taxation for the TY 2015 filing season.
· Year-to-date June 2016 sales and use tax cash collections $13.6 million
more, or 1.4 percent, than FY 2015 through June in spite of the 2016 repeal of sales
and use tax on electricity, natural gas, and heating fuels (to commercial buyers for
non-manufacturing purposes). The Office of Revenue Analysis estimates that $24.4
million of sales and use tax revenue has been foregone from this change.
· FY 2016 lottery transfer cash collections down $11.7 million or 3.1 percent
compared to prior year, primarily due to gaming competition in nearby Massachusetts.
o Video lottery net terminal income at Twin River down $17.0 million but offset in
part by video lottery net terminal income at Newport Grand up $545,047
o Traditional lottery games and Keno cash collections up by $4.1 million over
prior year.
o Net gaming revenue from traditional table games at Twin River up $2.3 million or
18.1 percent against prior year.
o Increased lottery cash collections of $540,089 due to the addition of a new
poker room at Twin River with 16 poker tables in December 2016.

1. June Fiscal year-to-date Summary of Findings:
Revenue Source

FY 2016 Year-to-Date Cash Collections

FY 2015 Year-to-Date Cash Collections

Nominal Difference

Percentage Difference

Personal Income Tax

$ 1,236,193,779

$ 1,215,367,670

$ 20,826,109

1.7 %

Sales and Use Tax

973,484,387

959,856,182

13,628,205

1.4 %

Departmental Receipts

355,927,142

350,477,801

5,449,341

1.6 %

Lottery Transfer

369,414,090

381,143,915

(11,729,825)

‑3.1 %

All Other Revenues

716,187,329

727,938,728

(11,751,399)

‑1.6 %

Total General Revenues

$ 3,651,206,727

$ 3,634,784,296

$ 16,422,431

0.5 %

Notable month of June cash collections items included:
· Decreased June 2016 personal income tax cash collections of $14.7 million,
‑11.7 percent below June 2015.
o The decrease in June 2016 personal income tax cash collections was substantively
driven by an increase of $8.7 million or 60.8 percent in personal income tax refunds
and adjustments versus June 2015, although all components of the personal income tax
were less in June 2016 than in June 2015.
· Decreased June 2016 sales and use tax cash collections of $2.4 million,
‑2.7 percent below June 2015.
· Significantly lower all other revenues cash collections than in June 2015
by $26.1 million or ‑11.8 percent. The decrease was in spite of the receipt of an
infrequently occurring large estate and transfer tax payment of $11.0 million in
June 2016 which was not enough to offset an increase in business corporations tax
refunds and adjustments of $10.6 million from June 2015 or shortfalls in both
insurance companies gross premiums tax and financial institutions tax cash
collections in June 2016.
· Decreased lottery transfer for May and June 2016 of $5.0 million, or ‑7.6
percent, from May and June 2015 as a result of increased competition from
Massachusetts based gaming facilities.
o The traditional games, the table games at Twin River, and the Newport Grand
video lottery terminal components of the lottery transfer showed a total increase of
$1.2 million in May and June 2016.

2. June 2016 Monthly Summary of Findings:
Revenue Source

June 2016 Cash Collections

June 2015 Cash Collections

Nominal Difference

Percentage Difference

Personal Income Tax

$ 110,398,132

$ 125,095,002

$ (14,696,870)

‑11.7 %

Sales and Use Tax

85,814,029

88,183,094

( 2,369,065)

‑2.7 %

Departmental Receipts

38,834,284

38,697,403

136,881

0.4 %

Lottery Transfer

61,001,463

66,011,490

(5,010,027)

‑7.6 %

All Other Revenues

194,271,553

220,346,910

(26,075,357)

‑11.8 %

Total General Revenues

$ 490,319,461

$ 538,333,899

$ (48,014,438)

‑8.9 %

The full cash collections report can be found on the Department of Revenue’s web
site, www.dor.ri,gov, under the Revenue Analysis directory or
at this link: http://www.dor.ri.gov/revenue-analysis/2016.php under the State
Reports tab.