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TNSoS: Latest Quaterly Business Report Shows State Economy Growing

Press release from the Office of Tennessee Secretary of State Tre Hargett; February 24, 2015:

More than 7,000 new businesses were formed in Tennessee during the final quarter of last year, according to a new economic report. The number of new businesses created during the fourth quarter of 2014 was up 8.8 percent from the same time period during the previous year.

The reports are produced quarterly by the Secretary of State’s office and the University of Tennessee-Knoxville’s Center for Business and Economic Research. They draw on information provided to the Secretary of State’s office regarding business filings and dissolutions, as well as other economic information drawn from other sources.

The report can be found online at http://tn.gov/sos/be_reports/201502.pdf

“The increase in the number of new business filings is a positive sign for the state’s economy,” Secretary of State Tre Hargett said. “It is one of several encouraging economic indicators that can be found in our latest report.”

Statewide, personal income growth is up 3.7 percent compared to the same period last year. Total tax revenues grew 4.7 percent compared to the fourth quarter of last year.

Non-farm employment increased 2.4 percent. However, the state’s unemployment rate remains a full percentage point above the national average.

Nationally, there are promising signs as well. The gross domestic product and sales of light vehicles continued to grow, while gasoline prices were at a five-year low.

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May Revenue Collection Continues Upward Growth Trend

Press release from the Tennessee Department of Finance & Administration; June 11, 2013:

NASHVILLE, Tenn. – Tennessee revenue collections continued an upward growth trend in May with a net positive growth of 3.92% over collections made in the same month last year. Finance and Administration Commissioner Larry Martin reported today that overall May revenues were $905.3 million or $31.5 million more than the state budgeted. It’s the tenth consecutive month this fiscal year in which total collections have reflected positive growth.

“The sales tax growth rate rebounded in May compared to earlier months, mainly because of building materials sales and purchases of new automobiles,” Martin said. “Corporate tax collections continued to show strong growth, exceeding budgeted expectations.

“Tennessee’s sales tax collections suggest that we are continuing to slowly recover from the worst recession on record. Slow recovery coupled with national and global economic concerns call for us to closely monitor collections and expenditures for the remainder of the year.”

On an accrual basis, May is the tenth month in the 2012-2013 fiscal year.

The general fund was over collected by $35.3 million, and the four other funds were under collected by $3.8 million.

Sales tax collections were $11.2 million more than the budgeted estimate for May. The May growth rate was positive 3.97%. For ten months revenues are under collected by $27.7 million. The year-to-date growth rate for ten months was positive 1.72%.

Franchise and excise taxes combined were $8.8 million above the budgeted estimate of $45.3 million. For ten months revenues are $276.6 million over the budgeted estimate.

Inheritance and estate tax collections were $17.0 million above the May estimate. For ten months collections are $27.5 million above the budgeted estimate.

Privilege tax collections were $3.5 million more the May budgeted estimate, and for ten months collections are $29.2 million above the budgeted estimate.

Gasoline and motor fuel collections for May decreased by 7.26%, and were $3.9 million less than the budgeted estimate. For ten months revenues are negative 2.63%, and $18.5 million below the budgeted estimate of $702.5 million.

Business tax collections were $2.0 million less than the May estimate and year to date for ten months collections are $0.2 million above the budgeted estimate.

Tobacco tax collections were $1.7 million below the budgeted estimate of $23.0 million. For ten months revenues are under collected in the amount of $8.6 million.

All other taxes for May were under collected by a net of $1.4 million.

Year-to-date collections for ten months were $319.6 million more than the budgeted estimate. The general fund was over collected by $319.7 million and the four other funds were under collected by $0.1 million. The FY 2013 revised budget assumed an over collection of $305.9 million in General Fund Taxes. Therefore, the amount of over collection, August through May, compared to what’s in the revised FY 2013 budget is $13.8 million ($319.7 million minus $305.9 million).

The budgeted revenue estimates for 2012-2013 are based on the State Funding Board’s consensus recommendation of December 19th, 2011 and adopted by the second session of the 107th General Assembly in April 2012. They are available on the state’s website at http://www.tn.gov/finance/bud/budget.html.

The State Funding Board met on December 14, 2012 to hear updated revenue projections from the state’s various economists. The board met again on December 19th and adopted revised revenue ranges for 2012-2013. The revised ranges assume an over collection from the July 2012 budgeted estimate in the amount of $203.0 million to $287.3 million in total taxes and in the amount of $224.2 million to $305.9 million in general fund taxes for the current fiscal year.

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April Continues 9-Month Positive Growth Trend for TN Revenue Collections

Press release from the Department of Finance & Administration; May 9, 2013:

NASHVILLE, Tenn. – Tennessee revenue collections continued their positive growth trend in April with a net growth of 9.31% over April collections one year ago. Finance and Administration Commissioner Mark Emkes reported today that overall April revenues were $1.5 billion or $160.9 million more than the state budgeted.

Total collections in April marked the ninth consecutive positive growth month this fiscal year. Corporate Franchise and Excise taxes and collections from the Hall Income Tax contributed substantially to the large over collection in April. Sales tax collections, however, recorded the second negative growth month this year.

“We expect one very large Franchise and Excise tax month remaining in this fiscal year, but with sales tax collections performing below budgeted expectations, we need to closely watch our revenue and expenditure patterns,” Emkes said. “National economists are warning states not to get overly confident during peaks of the slow recovery, so we are going to continue conservative budgeting to maintain stable financial conditions.”

On an accrual basis, April is the ninth month in the 2012-2013 fiscal year.

The general fund was over collected by $142.8 million, and the four other funds were over collected by $18.1 million.

Sales tax collections were $5.8 million less than the budgeted estimate for April. The April growth rate was negative 0.70%. For nine months revenues are under collected by $38.9 million. The year-to-date growth rate for nine months was positive 1.48%.

Franchise and excise taxes combined were $111.3 million above the budgeted estimate of $360.8 million. For nine months revenues are $267.8 million over the budgeted estimate. The year-to-date growth rate August through April was positive 13.42%.

Hall Income tax collections for April were $46.6 million more than the budgeted estimate. For nine months collections are $49.3 million above the budgeted estimate. The growth rate for the nine month period was positive 46.29%.

Inheritance and estate tax collections were $2.3 million below the April estimate. For nine months collections are $10.5 million above the budgeted estimate.

Privilege tax collections were $7.9 million more than the April budgeted estimate, and for nine months collections are $25.7 million above the budgeted estimate. The year-to-date growth rate for the nine month period was 15.67%.

Gasoline and motor fuel collections for April increased by 6.69%, and were $0.6 million more than the budgeted estimate. The growth rate for nine months was negative 0.49%, and collections are $14.6 million below the budgeted estimate of $631.0 million.

Tobacco tax collections were $3.8 million over the budgeted estimate of $22.3 million. For nine months revenues are under collected in the amount of $6.9 million.

All other taxes for April were under collected by a net of $1.2 million.

Year-to-date collections for nine months were $288.1 million more than the budgeted estimate. The general fund was over collected by $284.4 million and the four other funds were over collected by $3.9 million. The FY 2013 revised budget assumed an over collection of $305.9 million in General Fund Taxes. Therefore, the amount of under collection, August through April, compared to what’s in the revised FY 2013 budget is $21.5 million ($284.4 million minus $305.9 million).

The budgeted revenue estimates for 2012-2013 are based on the State Funding Board’s consensus recommendation of December 19th, 2011 and adopted by the second session of the 107th General Assembly in April 2012. They are available on the state’s website at http://www.tn.gov/finance/bud/budget.html.

The State Funding Board met on December 14, 2012 to hear updated revenue projections from the state’s various economists. The board met again on December 19th and adopted revised revenue ranges for 2012-2013. The revised ranges assume an over collection from the July 2012 budgeted estimate in the amount of $203.0 million to $287.3 million in total taxes and in the amount of $224.2 million to $305.9 million in general fund taxes for the current fiscal year.

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State Reports 24th Consecutive Month of Positive Revenue Growth

Press release from the State of Tennessee; April 12, 2012:

NASHVILLE – Tennessee revenue collections continued to exceed budgeted expectations in March. Finance and Administration Commissioner Mark Emkes said today that overall March revenues were $916.1 million, which is $78.6 million more than the state budgeted.

“March sales tax collections, representing February spending, recorded the 24th consecutive month of positive growth,” Emkes said. “We believe this to be a clear indication of continued consumer optimism, and represents an upswing in the state’s economy.

“Year-to-date corporate tax collections are very encouraging. However, this item needs to be carefully followed because about one-fourth of all collections typically occur in the month of April and these numbers have been extremely volatile in the recent past.

“In addition, we need to monitor a number of national and global issues, including resolution of the federal budget and the Patient Protection and Affordable Care Act, escalating gas prices and potential for rising inflation as well as the European financial crises and turbulence in the Middle East. We’ll need to be extremely diligent for the remainder of this year in order to keep the budget in balance and financially posture ourselves for the future.”

On an accrual basis, March is the eighth month in the 2011-2012 fiscal year.

The general fund was over collected by $79.2 million and the four other funds were under collected by $600,000.

Sales tax collections were $34.6 million more than the estimate for March. The March growth rate was positive 7.58%. For eight months revenues are over collected by $140.5 million. The year-to-date growth rate for eight months was positive 7.06%.

Franchise and excise taxes combined were $50.2 million above the budgeted estimate of $141.8 million. For eight months revenues are over collected by $198.6 million. The year-to-date growth rate for eight months was positive 26.65%.

Gasoline and motor fuel collections for March increased by 5.30% but were $157,000 below the budgeted estimate. For eight months revenues are under collected by $3.7 million.

Tobacco taxes collections were $1.0 million under the budgeted estimate of $25.1 million. For eight months revenues are under collected in the amount of $12.0 million.

Inheritance and estate taxes were under collected by $4.2 million for the month. Year to date collections for eight months are $284,000 less than the budgeted estimate.

Privilege tax collections were $1.4 million more than the March estimate, but on a year to date basis, August through March, collections are $470,000 below the estimate.

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

Year-to-date collections for eight months were $330.1 million more than the budgeted estimate. The general fund was over collected by $316.9 million and the four other funds were over collected by $13.2 million. The FY 2012 budget assumed an overcollection of $209.6 million in General Fund taxes. Therefore, the amount overcollected above and beyond what’s already in the budget is $107.3 million ($316.9 million minus $209.6 million).

The budgeted revenue estimates for 2011-2012 are based on the State Funding Board’s consensus recommendation of April 15, 2011 and adopted by the first session of the 107th General Assembly in May. They are available on the state’s website at http://www.tn.gov/finance/bud/budget.shtml.

The State Funding Board met on December 9th and 14th to hear updated revenue projections from the state’s various economists. The board met again on December 19th and adopted revised revenue ranges for 2011-2012. The revised ranges assume an over collection of $187.8 million to $220.5 million in total taxes and $177.0 million to $209.6 million in general fund taxes from the fiscal year 2011-2012 budgeted estimate.