Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2021 Cash Collections Report for December 2020. The Cash Collections Report, which is issued monthly, 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 James E. Thorsen noted: "FY 2021 total general revenue cash collections through December are up 10.9%, or $228.7 million, from last fiscal year through December. This positive difference is due, to a great extent, from the extension of the tax filing and payment deadlines from April 15 and June 15, 2020 to July 15, 2020 for personal income and nearly all business taxes. In total, $201.3 million in cash receipts directly related to the delay in the filing and payment due dates to July 15, 2020 were received in July 2020 that otherwise would have been paid in April through June 2020. After accounting for the receipt of FY 2020 tax payments in July 2020, FY 2021 cash collections are ahead of last fiscal year through December by 1.3%. The strong fiscal year-to-date over fiscal year-to-date growth rate experienced in December is primarily due to the jump in all other general revenues, which are $69.9 million more or $28.7 million after accounting for $41.3 million in deferred receipts received in July 2020. FY 2021 personal income tax cash collections through December were $168.1 million more than in FY 2020 with approximately $151.9 million the result of the delay in the filing and payment due dates to July 15, 2020. FY 2021sales and use tax cash collections through December were $42.3 million more than in FY 2020 through December while departmental receipts cash collections and the lottery transfer were a combined $51.5 million less than in the same period last fiscal year."

Notable cash collections items on a December fiscal year-to-date basis included: • Total personal income tax cash collections of $860.3 million, up $168.1 million or 24.3% year-to-date. The net increase in personal income tax cash collections breaks down as follows: o Personal income tax estimated payments up $29.3 million or 31.7% fiscal year-to-date, with $29.0 million in delayed payments received in July 2020; o Personal income tax final payments up $144.9 million or 310.6% fiscal year-to-date, with $142.2 million the result of the extension of the return due date to July 15, 2020; o Personal income tax refunds and adjustments up $28.9 million or 51.5% year-to-date, with $19.3 million of refunds paid in July 2020 also as a result of the extension of the return due date to July 15, 2020; o Personal income tax withholding payments in year-to-date FY 2021 were $22.7 million more than in year-to-date FY 2020, or 3.7%, above the 2.9% growth rate recorded in FY 2020 for the same period. • Year-to-date FY 2021 sales and use tax cash collections up 6.9% in comparison to FY 2020 through December with total non-motor vehicle receipts $30.9 million higher, including $22.7 million less in meal and beverage receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were 18.9% more in FY 2021 year-to-date than the same period in FY 2020. • FY 2020 all other general revenue sources cash collections through December were up $69.9 million relative to the same period last fiscal year. This increase includes $27.2 million of business corporation tax receipts, $13.7 million of insurance company gross premiums tax cash collections, and $347,200 of financial institutions tax cash payments that were accrued back to FY 2020. o After accounting for the cash received in July 2020 that was attributable to the extension of the payment due dates and the filing deadline, FY 2021 year-to-date business corporation tax cash collections are $54.2 million more and insurance company gross premium tax cash collections are slightly less than the same period last fiscal year. ? The jump in business corporation tax cash collections includes $51.9 million in payments received from pass-through entities on behalf of their shareholders in fiscal year-to-date FY 2021 vs. $7.1 million in the same period in FY 2020. o Also included in this surplus are excess cigarette and other tobacco products tax receipts of $9.6 million, $19.4 million less in estate and transfer tax payments, and $10.4 million less in other miscellaneous revenues cash collections. ? The increase in cigarette and other tobacco products tax cash collections may be related to Massachusetts' banning the sale of flavored tobacco, including menthol, effective June 1, 2020. • The fiscal year-to-date through December 2020 lottery transfer is $44.1 million less than in FY 2020 through December 2019 with $45.2 million of this shortfall attributable to reduced revenues from the video lottery terminals located at the Twin River and Tiverton Casino Hotels.

Cash collections for the month of December were up $68.8 million in FY 2021 vs. FY 2020, a difference of 19.8%. This surge was the result of a substantive increase in all other general revenues cash collections of $37.7 million, led by a jump in business corporation tax collections of $41.7 million. Continued strength in sales and use tax receipts, bolstered cash collections in December 2020 by $9.1 million and gains in personal income tax cash collections added a further $7.8 million to the year-over-year difference. Departmental receipts cash collections for December were $2.4 million less than in December 2019, but the lottery transfer in December 2020 was $16.4 million more than the same period last fiscal year. The increase in the lottery transfer is a bit illusory as $28.0 million in lottery transfer receipts were advanced into November in FY 2020 while no such advancement occurred in December 2020.

Notable cash collections items for the month of December included: • Total personal income tax cash collections of $130.9 million, up $7.8 million or 6.3% year-over-year. The net increase in personal income tax cash collections breaks down as follows: o Personal income tax estimated payments up $0.4 million or 2.7% year-over-year with this surplus supported by $1.3 million more in final payments, a variance of 24.0%; o Personal income tax refunds and adjustments down $4.7 million or 34.8% year-over-year; o Personal income tax withholding payments in December 2020, $1.4 million more than in December 2019, or 4.2 percentage points above the 3.0% growth rate recorded in FY 2020 for the same period. • December FY 2021 sales and use tax cash collections up 10.0% in comparison to December of FY 2020 with total non-motor vehicle receipts $6.8 million higher, including $3.5 million less in meal and beverage sales tax receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were $2.5 million more in December 2020 vs. December 2019. • All other general revenue sources cash collections in December 2020 were up $37.7 million relative to December 2019. This increase is largely attributable to an increase in business corporation tax cash collections of $41.7 million, in estate and transfer tax cash collections of $2.6 million, and in realty transfer tax cash receipts of $1.1 million in December 2020. These overages are reduced by year-over-year shortfalls in public utilities gross earnings tax cash collections of $2.5 million, in financial institutions tax receipts of $2.8 million, and in insurance company gross premiums tax cash collections of $2.3 million. • Year-over-year departmental receipts cash collections for December are $2.4 million or 13.6% less while the lottery transfer for December 2020 is $16.4 million more than in December 2019, primarily due to the advancement of $28.0 million in December 2019 lottery transfer receipts into November 2019.

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/2021.php under the State Reports tab.

Questions or comments on the report should be directed to Paul Grimaldi, Chief of Information and Public Relations by e-mail at paul.grimaldi@revenue.ri.gov or by phone at (401) 378-1080.