Press release from the Tennessee Department of Finance & Administration; July 11, 2014:
NASHVILLE, Tenn. – Total tax collections for June were below budgeted expectations. Finance and Administration Commissioner Larry Martin reported today that June ended with a net negative growth of 0.45%, compared to collections in the same month one year ago. Overall June revenues were $1.2 billion, which is $67.5 million less than the state budgeted.
“June collections recorded stronger than anticipated sales tax growth, but continued to reflect weaker than anticipated collections from the corporate sector,” Martin said. “We continue to believe the recent up-tick in retail activity is an indication of renewed consumer confidence, and an economy slowly on the mend.” All other tax sources, taken as a group, were below budgeted expectations in June.
“For the remainder of this year, we will continue to closely monitor collections and expenditures.”
On an accrual basis, June is the eleventh month in the 2013-2014 fiscal year.
The general fund was under collected by $67.6 million, and the four other funds were over collected by $0.1 million.
Sales tax collections were $13.5 million more than the estimate for June. The June growth rate was positive 5.54%. For eleven months revenues are under collected by $15.5 million. The year-to-date growth rate for eleven months was positive 3.57%.
Franchise and excise taxes combined were $54.1 million below the budgeted estimate of $383.2 million. The growth rate for June was negative 3.55%. For eleven months revenues are under collected by $278.3 million and the year-to-date growth rate was negative 8.81%.
Privilege tax collections were $8.9 million below the June estimate. For eleven months collections are $23.0 million below the budgeted estimate.
Business tax collections were $9.0 million less than the June estimate. Year-to-date collections for eleven months are $10.2 million below the budgeted estimate.
Inheritance and estate tax collections were $0.7 million below the June estimate. For eleven months collections are $19.9 million above the budgeted estimate.
Tobacco tax collections were $6.6 million below the budgeted estimate of $25.7 million. For eleven months revenues are under collected by $13.2 million.
Gasoline and motor fuel collections for June were over collected by $3.1 million. For eleven months revenues are over collected by $4.8 million.
All other taxes for June were under collected by a net of $4.8 million.
Year-to-date collections for eleven months were $289.9 million less than the budgeted estimate. The general fund was under collected by $303.6 million and the four other funds were over collected by $13.7 million.
The budgeted revenue estimates for 2013-2014 are based on the State Funding Board’s consensus recommendation of December 19, 2012 and adopted by the first session of the 108th General Assembly in April 2013. They are available 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.
