Rhode Island’s economy is generating more revenue that was estimated last November, mainly because of a healthy increase in income tax receipts, the state Department of Revenue said today in a report.
Income tax revenues have increased by nearly $48 million over projections, which is fueling a year-to-year hike of about $62 million in revenue.
While income taxes are up by more than four percent, the sales tax and lottery receipts are both off slightly. Mark Furcolo, state revenue director, said that income gains in 2017, likely through capital gains, “have contributed substantively to this outperformance.”
Other tax categories running above expectations are estate taxes, the insurance company gross receipts tax and financial institutions tax revenues.