Press release from the Tennessee Department of Finance and Administration, Feb. 12, 2014:
NASHVILLE – Tennessee’s total tax collections fell below budgeted expectations in January. Finance and Administration Commissioner Larry Martin today announced that overall January revenues were $1.1 billion, which is $51.6 million less than the state budgeted. January represents the fifth month of negative growth in corporate tax collections this year.
“January sales tax collections reflect consumer spending that occurred during the December holiday buying season and we recorded the largest growth rate we’ve experienced in the past 13 months,” Martin said. “Retailers were more aggressive in holiday marketing strategies.
“April is typically the biggest month for corporate tax filings, which have been volatile here and across the nation for some time. In anticipation of a revenue shortfall, we’re closely monitoring state spending and revenues in order to keep the budget balanced.”
On an accrual basis, January is the sixth month in the 2013-2014 fiscal year.
The general fund was under collected by $43.8 million and the four other funds were under collected by $7.8 million.
Sales tax collections were $6.3 million more than the estimate for January. The January growth rate was positive 4.94%. For six months revenues are under collected by $18.0 million. The year-to-date growth rate for six months was positive 3.65%.
Franchise and excise taxes combined were $48.9 million below the budgeted estimate of $188.6 million. For six months revenues are under collected by $207.3 million.
Gasoline and motor fuel collections for January decreased by 8.57% and were $4.9 million below the budgeted estimate of $71.5 million. For six months revenues are under collected by $0.6 million.
Tobacco tax collections were $0.9 million below the budgeted estimate of $18.5 million, and for six months they are $6.3 million under the budgeted estimate.
Inheritance and estate taxes were over collected by $0.1 million for the month. Year-to-date collections for six months are $15.1 million more than the budgeted estimate.
Privilege tax collections were $3.1 million less than the January estimate, and on a year-to-date basis, August through January, collections are $4.4 million below the estimate.
All other taxes were under collected by a net of $0.2 million.
Year-to-date collections for six months were $222.7 million less than the budgeted estimate. The general fund was under collected by $219.6 million and the four other funds were under collected by $3.1 million.
The budgeted revenue estimates for 2013-2014 are based on the State Funding Board’s consensus recommendation of December 19th, 2012 and adopted by the first session of the 108th General Assembly in April 2013. They are available on the state’s website at http://www.tn.gov/finance/bud/Revenues.shtml.
The Funding Board met on December 10, 2013 to hear updated revenue projections from the state’s various economists. The board met again on December 17 and adopted revised revenue ranges for 2013-2014. The revised ranges assume an under collection from the July 2013 budgeted estimate in the amount of $111.2 million to $134.5 million in total taxes and in the amount of $126.1 million to $145.6 million in general fund taxes for the current fiscal year.