July 2021 Income Assessment Report Available
Providence, RI – The Rhode Island Department of Revenue (DOR) today released its Fiscal Year 2022 Income Assessment Report for July 2021. The Income Assessment Report, which is released on a monthly basis , compares the adjusted general revenues by revenue source on a cumulative annual and monthly basis to the general revenue forecast by revenue source. Expected general revenues are estimated by the DOR Office of Revenue Analysis from the revenue estimates included in the promulgated budget for fiscal year 2022 signed on July 6, 2021 by Governor McKee. The methodology underlying the Bureau of Revenue Analysis estimates is presented in Section II. of the report.
July Cumulative Yield: On a year-to-date basis, the July 2021 report shows that the Adjusted Total General Revenue is higher than the Expected Total General Revenue, based on the adopted revenue estimates for FY 2022 included in the adopted budget and estimation methodology of the Office of Revenue Analysis, with adjusted total general revenues of $ 22.1 million more than planned total general revenues, a variance of 8.4%. The main driver of this outperformance is excise tax revenues which are up $ 16.2 million, or 12.3%, compared to expectations. The adjusted general business tax revenue is $ 9.4 million ahead of estimate, or 90.8%. Adjusted personal income tax revenues for the year-to-date to July are $ 1.1 million lower than forecast, a variance of 1.1%, while combined adjusted revenues of other tax revenue and departmental revenue is $ 2.5 million lower than expected, or 12.5% year over year. -date base.
Regarding performance since the start of the year in July, revenue director Guillermo L. Tello made the following observations: budget enacted on July 6, 2021, a variance of 8.4%. • Adjusted sales and usage tax revenue from the start of fiscal 2022 through July exceeds expectations by $ 15 million, or 13.0%, likely due to increased spending capacity of consumers , because the state economy operates without restrictions induced by the COVID-19 pandemic. • Adjusted corporate tax revenue up to July is $ 10.9 million higher than estimate, a variance of 205.5% and could include some estimated payments made by C corporations in anticipation of ” an increase in tax payable for fiscal 2021 associated with the imposition of the Paycheck Protection Program (PPP) loan remission of more than $ 250,000. • Year-to-date through July, excise tax revenue on cigarettes and other tobacco products is $ 1.2 million more than forecast, a difference of 8.4%, which continues the trend established in fiscal 2021 as the ban on the sale of flavored tobacco and cigarettes have taken hold in Massachusetts. • Adjusted personal income tax revenues up to July are $ 1.1 million lower than estimate, a variance of 1.1%, due to withholdings of $ 6.8 million less than expected, or 6.6%, offset by estimated payments of $ 1.9 million (35.9%), final payments of $ 2.5 million (68.8%) and refunds and adjustments $ 1.2 million (12.5%) higher than their respective estimates. • Adjusted revenue from departmental revenue since the start of fiscal 2022 is lower than the estimate of $ 2.3 million, a difference of 16.9%.
Monthly performance for July. Since July is the first month of the fiscal year, the assessment of income on an annual and monthly basis is the same.
The full report can be viewed on the Department of Revenue’s website at http://www.dor.ri.gov/revenue-analysis/2021.php.
Questions or comments on the report should be directed to Paul Grimaldi, Chief Information Officer and Public Relations by email at [email protected] or by phone at (401) 378-1080.