June Tax Collections Up

Press Release From the State of Tennessee, July 11, 2011:

NASHVILLE – Total tax collections for June were above state budget estimates for the month. Finance and Administration Commissioner Mark Emkes today announced that overall June revenues were $1.07 billion, which is $31.8 million more than the state budgeted. June sales tax collections represent consumer spending that took place in the month of May.

June marks the 11th consecutive month this fiscal year in which total collections have exceeded the budgeted estimates. Sales tax collections in June recorded the 15th consecutive month of positive growth, exceeding the budgeted estimate, and corporate tax collections also performed above June expectations.

“Tennessee’s revenue collections continue to show a positive growth trend, but the latest national leading economic indicators point to a very slow economic recovery,” Emkes said. “This will require us to continue to closely monitor collections and expenditures for the remainder of this year in order to end this fiscal year with a balanced budget.”

On an accrual basis, June is the eleventh month in the 2010-2011 fiscal year.

The general fund was over collected by $31.1 million, and the four other funds were over collected by $700,000.

Sales tax collections were $28.8 million more than the estimate for June. The June growth rate was 6.32%. For eleven months revenues are over collected by $195.6 million. The year-to-date growth rate for eleven months was positive 4.60%.

Franchise and excise taxes combined were $29.6 million above the budgeted estimate of $253.2 million. The growth rate for June was 13.18%. For eleven months revenues are over collected by $47.8 million and the year-to-date growth rate was 6.99%.

Privilege tax collections were $3.7 million below the June estimate. For eleven months collections are $9.7 million below the budgeted estimate.

Business tax collections were $20.3 million less than the June estimate. Year-to-date collections for eleven months are $38.8 million below the budgeted estimate.

Inheritance and estate tax collections were $800,000 below the June estimate. For eleven months collections are $26.7 million above the budgeted estimate.

Tobacco tax collections were $1.6 million below the budgeted estimate of $29.5 million. For eleven months revenues are under collected.