Providence, R.I. -- The Rhode Island Department of Revenue today released its FY 2021 Cash Collections Report for February 2021. 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 Acting Director Marilyn S. McConaghy, Esq. noted: "FY 2021 total general revenue cash collections through February are up 10%, or $270.1 million, from last fiscal year through February. 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 2.6% more vs. last fiscal year through February. The strong fiscal year-to-date over fiscal year-to-date growth rate experienced in February is also attributable to all other general revenues which are $61.3 million more or $20 million after accounting for $41.3 million in deferred receipts received in July 2020. FY 2021 personal income tax cash collections through February were $226.9 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 and a substantive decline in personal income tax refunds and adjustments which are down 20.1% in FY 2021 through February due, in part, to the delay in the beginning of tax filing season to February 12, 2021 for TY 2020 personal income tax returns vs. January 27, 2020 last fiscal year for TY 2019 personal income tax returns. FY 2021sales and use tax cash collections through February were $57.1 million more than in FY 2020 through February while estate and transfer tax receipts, departmental receipts cash collections and the lottery transfer were a combined $95.6 million less than in the same period last fiscal year."

Notable cash collections items on a February fiscal year-to-date basis included: • Total personal income tax cash collections of $1.102 billion, up $226.9 million or 25.9% year-to-date. The net increase in personal income tax cash collections breaks down as follows: o Personal income tax estimated payments up $29.4 million or 18.5% fiscal year-to-date, with $29.0 million in delayed payments received in July 2020; o Personal income tax final payments up $143.7 million or 246.4% 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 down $33.9 million or 20.1% year-to-date, with $19.3 million of refunds paid in July 2020 as a result of the extension of the return due date to July 15, 2020; and o Personal income tax withholding payments in year-to-date FY 2021 were $19.9 million more than in year-to-date FY 2020, or 0.6 percentage points, below the 3.0% growth rate recorded in FY 2020 for the same period. • Year-to-date FY 2021 sales and use tax cash collections up 7.0% in comparison to FY 2020 through February with total non-motor vehicle receipts $44 million higher, including $29.7 million less in meal and beverage receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were 16.2% more in FY 2021 year-to-date than the same period in FY 2020. • FY 2020 all other general revenue sources cash collections through January were up $61.3 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 $54.5 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 $73.9 million in payments received from pass-through entities on behalf of their shareholders in fiscal year-to-date FY 2021 vs. $33.6 million in the same period in FY 2020. o Also included in this surplus are higher cigarette and other tobacco products tax receipts of $16.4 million, $2 million more in realty transfer tax cash collections and a surplus of $1.3 million in alcohol excise tax payments. ? 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. o These surpluses in cash collections are offset by $20.5 million less in estate and transfer tax payments, $13.8 million less in financial institutions tax cash receipts, $11.8 million less in other miscellaneous revenues cash collections, and a $3.6 million shortfall in public utilities gross earnings tax receipts. • The fiscal year-to-date through February 2021 lottery transfer is $70.2 million less than in FY 2020 through February 2020 with $73 million of this shortfall attributable to reduced revenues from the video lottery terminals located at the Twin River and Tiverton Casino Hotels. This shortfall includes the closing of the state's two casinos during the Pause of November 30 – December 20, 2020.

Cash collections for the month of February were up $67.7 million in FY 2021 vs. FY 2020, a difference of 37.6%. This overage was the result of a significant increase in February personal income tax cash collections of $77 million, continued strength in sales and use tax receipts which were $8.2 million more in February 2021 vs. February 2020, and a modest pickup in departmental receipts cash receipts of $1.9 million. These surpluses were offset by shortfalls in all other general revenues cash collections of $13.4 million and a lower lottery transfer of $6 million.

Notable cash collections items for the month of February included: • Total personal income tax cash collections of $85.4 million, up $77 million or 912.4% year-over-year. The net increase in personal income tax cash collections breaks down as follows: o Personal income tax estimated payments up $1.3 million or 41.6% year-over-year with this surplus reduced by $1 million less in final payments, a variance of 16.1%; o Personal income tax refunds and adjustments down $59.7 million or 60% year-over-year likely due to the delayed opening of tax filing season to February 12, 2021 for TY 2020 returns vs. January 27, 2020 for TY 2019 returns; and o Personal income tax withholding payments in February 2021, $16.9 million more than in February 2020, or 19.1 percentage points above the 1.9% growth rate recorded in FY 2020 for the same period. • February 2021 sales and use tax cash collections up 9.4% in comparison to February of FY 2020 with total non-motor vehicle receipts $6.9 million higher, including $2.2 million less in meal and beverage sales tax receipts. Motor vehicle use tax receipts (i.e., Registry Receipts) were up $1.5 million, or 17.1%, in February 2021 vs. February 2020. • All other general revenue sources cash collections in February 2021 were down $13.4 million relative to February 2020. This decrease is overwhelmingly due to a large decrease in financial institutions cash collections of $12.7 million, a shortfall in business corporation tax receipts of $2 million, and a decrease in health care provider assessment payments of $1.1 million offset in part by an increase in cigarette and other tobacco products excise tax receipts of $4.5 million and higher departmental receipts cash collections of $1.9 million.

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.