The R.I. Department of Revenue today released the FY 2017 Revenue Assessment Report for August 2016

FY 2017 Monthly Revenue Assessment Report for August 2016

October 7, 2016 Providence, R.I. — The Rhode Island Department of Revenue (DOR)
today released its FY 2017 Revenue Assessment Report for August 2016. The Revenue
Assessment Report, which is issued on a monthly basis, compares the adjusted general
revenues by revenue source on a fiscal year-to-date and monthly basis to expected
general revenues by revenue source. Expected general revenues are estimated by the
DOR’s Office of Revenue Analysis from the revenue estimates enacted in the FY 2017
budget.[1] The methodology underlying the Office of Revenue Analysis’ estimates is
contained in the report.

1. August Year-To-Date Performance. On a fiscal year-to-date basis, the August
2016 report shows that adjusted total general revenues are ahead of expected total
general revenues, based on the revenue estimates enacted in the FY 2017 budget and
the Office of Revenue Analysis’ estimation methodology, with adjusted total general
revenues $21.2 million more than expected total general revenues, a variance of 4.5
percent.

2. August Monthly Performance. Adjusted FY 2017 August total general revenues
exceeded expected FY 2017 monthly total general revenues based on the revenue
estimates enacted in the FY 2017 budget and the Office of Revenue Analysis’
estimation methodology, by $23.4 million or 9.3 percent.

1. Fiscal Year-to-Date Summary of Findings:
Revenue Source

FY 2017 YTD Adjusted Revenues August 2016

FY 2017 YTD Expected Revenues August 2016

Nominal Difference

Percentage Difference

Personal Income Tax

$ 185,875,412

$ 174,713,113

$ 11,162,300

6.4 %

Sales and Use Tax

187,331,454

184,188,555

3,142,899

1.7 %

Departmental Receipts

24,071,948

23,360,429

711,519

3.0 %

Lottery Transfer

32,759,524

30,861,490

1,898,034

6.2 %

All Other Gen Rev Sources

58,113,828

53,813,235

4,300,593

8.0 %

Total General Revenues

$ 488,152,166

$ 466,936,822

$ 21,215,344

4.5 %

Regarding August year-to-date performance, Director of Revenue Robert S. Hull made
the following observations:

* Fiscal year-to-date revenues through August are well ahead of expectations
at $21.2 million, or 4.5 percent.

* The spread between adjusted and expected personal income tax revenues
totaled $11.2 million and includes an adjustment that reduces refunds and
adjustments by $9.3 million to account for July and August 2016 refunds that were
accrued back to FY 2016.

o Adjusted FY 2017 through August personal income tax withholding payments lead
expectations by $10.4 million, or 6.1 percent.

* Adjusted sales and use tax revenues through August lead expectations by $3.1
million, or 1.7 percent.

* Adjusted business corporations tax revenues are 19.9 percent more than
expected FY 2017 through August business corporations tax revenues, a difference of
$1.8 million.

* Adjusted estate and transfer tax revenues through August are $3.1 million
ahead of expectations, a variance of 83.5 percent.

* FY 2017 year-to-date adjusted lottery transfer revenues are $1.9 million
more than expected lottery transfer revenues through August due primarily to
revenues generated from traditional lottery products and monitor games such as Keno
outperforming by $1.3 million.

2. Monthly Summary of Findings for August 2016:
Revenue Source

FY 2017 Monthly Adjusted Revenues August 2016

FY 2017 Monthly Expected Revenues August 2016

Nominal Difference

Percentage Difference

Personal Income Tax

$ 103,421,487

$ 93,781,109

$ 9,640,378

10.3 %

Sales and Use Tax

96,370,447

90,513,515

5,856,932

6.5 %

Departmental Receipts

12,715,959

12,439,853

276,106

2.2 %

Lottery Transfer

32,759,524

30,861,490

1,898,034

6.2 %

All Other Gen Rev Sources

29,855,219

24,144,356

5,710,863

23.7 %

Total General Revenues

$ 275,122,636

$ 251,740,323

$ 23,382,314

9.3 %

Regarding August monthly performance, Director Hull made the following observations:

* August adjusted monthly revenues are $23.4 million, or 9.3 percent, more
than expected monthly revenues.

* Monthly adjusted personal income tax revenues exceed expected August
personal income tax revenues by $9.6 million and include an adjustment that reduces
refunds and adjustments by $4.3 million to account for refunds that were processed
in August 2016 and accrued back to FY 2016.

o August personal income tax withholding payments were 10.1 percent more than
expected, a difference of $9.2 million.

* Adjusted sales and use tax revenues for August lead expectations by $5.9
million, or 6.5 percent and include $2.3 million in an audit recovery of prior year
sales and use tax revenues owed.

* Adjusted estate and transfer tax revenues for August are $1.7 million more
than expected monthly revenues, a variance of 88.2 percent.

* FY 2017 August adjusted lottery transfer revenues are $1.9 million more than
expected monthly lottery transfer revenues due primarily to revenues generated from
traditional lottery products and monitor games such as Keno outperforming by $1.3
million.

* August adjusted business corporations tax revenues are $1.6 million more
than monthly expected revenues, a variance of 62.5 percent.
The entire report can be found on the Department of Revenue’s web site,
www.dor.ri,gov, under the Revenue Analysis header on the
State Reports tab.