NASHVILLE – Revenue collections in Tennessee for October continue to indicate consumer confidence in the state’s economy. Finance and Administration commissioner Mark Emkes reported today that state revenue collections for October were $791.5 million, which is 8.01% above October 2010.
“We’re satisfied with the positive growth rates experienced in our overall tax collections, especially in the sales tax, which is the best indicator of economic recovery in Tennessee,” Emkes said. “The sales tax recorded a first quarter growth of 6.5%, which is the best first quarter growth since 2006.
“However, we continue to watch national leading economic indicators, which show that very slow recovery is in progress, and in light of that and the uncertainty surrounding resolution of the federal budget, we must continue to be diligent in monitoring our spending patterns.”
On an accrual basis, October is the third month in the 2011-2012 fiscal year.
October collections were $36.4 million more than the budgeted estimate. The general fund was over collected by $34.0 million and the four other funds were over collected by $2.4 million.
Sales tax collections were $15.9 million more than the estimate for October. The October growth rate was 6.17%. Year-to-date the growth rate is 6.50%.
Franchise and excise combined collections for October were $35.1 million, and they were $24.9 million above the budgeted estimate of $10.2 million.
Gasoline and motor fuel collections increased by 1.93% and they were $1.2 million below the budgeted estimate of $72.8 million.
Tobacco tax collections for the month were under collected by $1.6 million.
Privilege tax collections were $600,000 less than the budgeted estimate of $21.2 million.
Inheritance and Estate taxes were under collected by $1.9 million for the month.
All other taxes were over collected by a net of $0.9 million.
Year-to-date collections for three months were $59.9 million more than the budgeted estimate. The general fund was over collected by $56.8 million and the four other funds were over collected by $3.1 million.
The budgeted revenue estimates for 2011-2012 are based on the State Funding Board’s consensus recommendation of April 15, 2011 and adopted by the first session of the 107th General Assembly in May. They are available on the state’s website at http://www.tn.gov/finance/bud/budget.html.