Cash collections rise fiscal YTD in January by 2.6%

PROVIDENCE – Cash collections rose during the first seven months of the fiscal year, increasing 2.6 percent to $2 billion compared with $1.96 billion during the same period last year, the state Department of Revenue said Monday.
Among the revenue categories, personal income tax, sales and use tax, and other general revenue all had increases, while departmental receipts and lottery transfer had declines, the state agency said.
Acting Director of Revenue Marilyn D. McConaghy said collections grew despite departmental receipts and lottery transfer falling a combined $12.3 million on a year-to-date basis.
She said that the fiscal year-over-year decline in lottery transfer cash collections was expected and due to the onset of casino gaming in Massachusetts last June. The shortfall in departmental receipts was attributable to a change in how checks issued by the state that remain uncashed are treated. Those checks previously were deposited as general revenue in June of the fiscal year. However, beginning in fiscal 2016, checks deemed to be unclaimed property are moved from miscellaneous departmental receipts to the unclaimed property program, the state agency said.

January cash collections grew 2.8 percent to $303.8 million, compared with $295.7 million in January 2015.

“Both personal income tax, and sales and use tax cash collections posted substantive year-over-year growth rates in January, but the real standout was the lottery transfer which was 2 percent greater in January 2016 [versus] January 2015. This is the second month this fiscal year that the lottery transfer cash collections were positive year over year. … Twin River and the state have really done a good job in responding to gaming competition in nearby Massachusetts,” McConaghy said.

She blamed the 34 percent decrease in all other revenue to declines in business corporations tax cash collections of $4.3 million, motor vehicle operator’s license and vehicle registration fees of $1.6 million and cigarettes tax cash collections of $1.3 million. She said the decline in motor vehicle operator’s license and vehicle registration fees is due largely to the receipt of $1.2 million in prior-year International Registration Plan fees in January 2015.

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