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TN Has Raised Nearly $125M More in Taxes Than Projected for Current Fiscal Year

Press release from the Tennessee Department of Finance & Administration; January 9, 2015:

NASHVILLE, Tenn.– Tennessee revenue collections for December exceeded the same month one year ago, driven primarily by sales tax collections.  Finance and Administration Commissioner Larry Martin reported today that state revenue collections for December were $1.0 billion, which is 5.25% above December 2013.  December sales tax collections represent consumer spending that occurred in November, which last year included one week of Christmas shopping after Black Friday before December 1.

“Total revenues reported during December were higher than expected due to over collections in the sales and corporate tax categories,” Martin said.  “The December sales tax growth rate may have been influenced by lower gasoline prices, renewed consumer confidence, and the additional shopping time.  January’s report will give us a clearer picture with Christmas retail activity included.”

On an accrual basis, December is the fifth month in the 2014-2015 fiscal year.

December collections were $28.9 million more than the budgeted estimate. The general fund was over collected by $21.8 million and the four other funds were over collected by $7.1 million.

Sales tax collections were $21.4 million more than the estimate for December.  The December growth rate was 5.87%. For five months revenues are over collected by $98.2 million, and the year-to-date growth rate is 6.49%.

Franchise and excise taxes combined were $6.4 million more than the budgeted estimate of $212.9 million. For five months revenues are under collected by $13.4 million.

Gasoline and motor fuel collections for December decreased by 0.27%, but were $8.1 million more than the budgeted estimate of $66.1 million.  For five months revenues are over collected by $8.3 million.

Tobacco tax collections were $1.7 million less than the budgeted estimate of $22.8 million, and for five months they are $5.3 million less than the budgeted estimate.

Privilege tax collections were $2.3 million less than the budgeted estimate of $21.3 million. Year-to-date collections for five months are $6.9 million more than the budgeted estimate.

Inheritance and estate taxes were under collected by $0.7 million for the month. For five months collections are $9.3 million more than the budgeted estimate.

Business tax collections were $0.1 million less than the December estimate.

All other taxes were under collected by a net of $2.2 million.

Year-to-date collections for five months were $124.4 million more than the budgeted estimate. The general fund was over collected by $109.3 million and the four other funds were over collected by $15.1 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.

The Funding Board met on December 11, 2014 to hear updated revenue projections from the state’s various economists. The board met again on December 16 and adopted revised revenue ranges for 2014-2015. The revised ranges assume an over collection from the July 2014 budgeted estimate in the amount of $32.3 million to $73.4 million in total taxes. The revised ranges for the general fund recognize a negative growth in the amount of $6.6 million up to a positive growth of $27.5 million for the current fiscal year.

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January TN Unemployment Unchanged from December: 10.7 Percent

State of Tennessee Press Release, Mar 4, 2010:

NASHVILLE – Tennessee Commissioner of Labor & Workforce Development James Neeley announced today Tennessee’s unemployment rate for January was 10.7 percent, unchanged from the revised December rate of 10.7 percent. The January rate a year ago was 9.1 percent. The national unemployment rate for January 2010 was 9.7 percent, down from the December rate of 10 percent.

“The state unemployment rate is holding steady for the month of January,” reported Labor Commissioner James Neeley. “While the unemployment rate continues to be high in Tennessee, we did see a slight increase in employment (+3,400), and two of the three largest gains in employment were in the manufacturing industry.”

Major Changes in Estimated Nonagricultural Employment December 2009 to January 2010

According to the Business Survey, 200 job gains occurred in plastic and rubber products manufacturing; 200 in fabricated metal products manufacturing; and 200 in federal government. Major employment decreases occurred in trade, transportation and utilities, down by 18,100; leisure and hospitality declined by 11,100 jobs; and professional and business services decreased by 9,900.

Major Changes in Estimated Nonagricultural Employment January 2009 to January 2010

Year-over-year increases occurred in health care and social assistance, up by 6,800; state government gained 1,100; manufacturing was down 31,800; trade transportation and utilities lost 28,800; and mining and construction decreased by 16,100.