Cash collections increase fiscal YTD, but decline in October

CASH COLLECTIONS increased 3.5 percent through the first four months of the fiscal year when compared with the previous fiscal period, but decreased 2 percent when comparing October with October 2014, according to the state Department of Revenue. / COURTESY R.I. DEPARTMENT OF REVENUE
CASH COLLECTIONS increased 3.5 percent through the first four months of the fiscal year when compared with the previous fiscal period, but decreased 2 percent when comparing October with October 2014, according to the state Department of Revenue. / COURTESY R.I. DEPARTMENT OF REVENUE

PROVIDENCE – Cash collections increased 3.5 percent through the first four months of the fiscal year when compared with the same period last year, but decreased 2 percent when comparing October with October 2014, according to the state Department of Revenue.
Cash collections totaled $1.2 billion fiscal year to date, $39.8 million higher than the same period a year ago. Personal income tax grew 6.3 percent during that period, to $397.7 million, and sales and use tax increased 3.9 percent, to $351.3 million, while lottery transfer fell 7 percent, to $89.9 million, the state agency said.

Acting Director of Revenue David M. Sullivan blamed the lottery transfer decrease on the opening of the Plainridge Park Casino in Plainville, Mass. Sullivan said all other general revenue sources, which had the greatest increase at 10.6 percent, were boosted by the business corporations tax.

For the month of October alone, cash collections were $248.2 million, approximately $5 million less than the prior year period. Departmental receipts, lottery transfer and all other general revenue sources all experienced declines in October, of 11.9 percent, 5 percent and 20.9 percent, respectively, according to information from the state.

“The state has definitely seen a softening in cash collections in October with departmental receipts, the lottery transfer, and all other general revenues below the levels received in October of 2014 and sales and use tax collections barely eking out a gain on a year-over-year basis. This is in sharp contrast to October 2014 when total general revenues cash collections were up 4.4 percent on a year-over-year basis. Hopefully, this slowdown is a one month anomaly,” Sullivan said in a statement.

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“The decline in lottery transfer cash collections for October 2015 was less than one-half of the decline realized in September 2015 on a year-over-year basis indicating that the Plainridge Park Casino … is having a lessening impact on the state’s two gaming facilities,” Sullivan continued.
Personal income tax grew 5.7 percent in October, to $92.5 million, while sales and use tax increased 0.4 percent, to $83.5 million.

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