Press release from the Tennessee Department of Finance & Administration; November 14, 2014:
NASHVILLE, Tenn. – Tennessee revenue collections for October were more than collections for the same month last year and exceeded the budgeted estimate. Finance and Administration Commissioner Larry Martin today reported that collections for October were $874.1 million, which is 5.69% more than October 2013, and $15.3 million more than the budgeted estimate.
“The negative growth rate reported in corporate tax collections for October is not unusual for the business cycle,” Martin said. “October is the month when calendar year tax filers request a refund if they have overpaid their actual tax liability in previous months.
“The sales tax is our best economic indicator, and in October recorded the strongest first quarter growth since 2011. This is encouraging, but we must continue to closely monitor revenues and expenditures to keep Tennessee’s budget balanced.”
On an accrual basis, October is the third month in the 2014-2015 fiscal year.
General fund collections for October were $10.2 million more than the budgeted estimate, and the four other funds that share in state tax collections were $5.1 million above the estimate.
Sales tax collections were $17.5 million above the estimate for October. The October growth rate was 7.27%. The year-to-date growth rate was positive 6.44%.
Franchise and excise combined collections for October were $26.8 million, which is $19.2 million below the budgeted estimate of $46.0 million.
Gasoline and motor fuel collections increased by 7.67%, which is $1.8 million above the budgeted estimate of $71.3 million.
Tobacco tax collections for the month were over collected by $3.1 million.
Privilege tax collections were $1.9 million more than the budgeted estimate of $27.0 million.
Inheritance and Estate taxes were over collected by $3.9 million for the month.
Business tax collections were $0.7 million above the October estimate.
Hall income taxes were over collected by $2.2 million in October.
All other taxes were over collected by a net of $3.4 million.
Year-to-date collections for three months were $101.6 million more than the budgeted estimate. The general fund was over collected by $91.0 million and the four other funds were over collected by $10.6 million.
The budgeted revenue estimates for 2014-2015 are based on the State Funding Board’s consensus recommendation of December 17th, 2013 and adopted by the second session of the 108th General Assembly in April 2014. They are available on the state’s website at: http://www.tn.gov/finance/bud/Revenues.shtml.