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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.

COLLECTIONS TABLES

TN Revenue Up in 1st Month of New Fiscal Year Collections

Press release from the Tennessee Department of Finance & Administration; September 12, 2014:

NASHVILLE, Tenn. – Tennessee revenue collections exceeded budgeted estimates for the first month of the state’s fiscal year. Finance and Administration Commissioner Larry Martin today reported that overall August revenues were $870 million, which is $31 million above collections a year ago. The growth rate for August was 3.70%.

“Sales taxes collected by retailers in July grew 6.73 percent, the largest month-over-month growth we have experienced in the past 27 months,” Martin said. “Corporate tax collections grew by 9.25 percent, but were still slightly under budgeted expectations. All other taxes, taken as a group, had negative growth of 5.33% but were $6.1 million above the budgeted estimate for August.

“While we are encouraged by the August numbers, we continue to be concerned about the relatively slow economic recovery in Tennessee. It is important for us to maintain our close controls on state spending and to carefully monitor revenue trends.”

On an accrual basis, August is the first month in the 2014-2015 fiscal year.

August collections were $24.4 million more than the budgeted estimate. The general fund was over collected by $22.7 million and the four other funds that share in state tax collections were over collected by $1.7 million.

Sales tax collections were $19.2 million more than the estimate for August. The August growth rate was positive 6.73%.

Franchise and excise taxes combined were $0.9 million below the budgeted estimate of $35.5 million, and the growth rate was positive 9.25%.

Gasoline and motor fuel collections increased by 4.91% from August of 2013, and were $0.3 million above the budgeted estimate of $70.1 million.

Inheritance tax collections were $2.5 million above the budgeted estimate.

Privilege tax collections were $1.8 million more than the budgeted estimate of $21.4 million

Business tax collections were $2.4 million above the August estimate.

Tobacco tax collections for the month were under collected by $1.1 million.

All other taxes were over collected by a net of $0.2 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’re available at http://www.tn.gov/finance/bud/Revenues.shtml.

COLLECTION TABLES

State Sales Tax Collections Come In Short Of Expectations In September

Press Release From Tennessee Department of Finance & Administration, Oct. 11, 2013;

NASHVILLE – Overall September revenues were under the budgeted estimates in Tennessee, although sales taxes continue to show modest growth.

Finance and Administration Commissioner Larry Martin reported that overall September revenues were $1.1 billion, which is 5.22 percent below the budgeted estimate.

“The sales tax is the ‘bread and butter’ of revenue collections in Tennessee, and it’s our leading economic indicator,” Martin said. “September sales tax collections continued to reflect modest growth consistent with a sluggish economy.

“With uncertainty surrounding resolution of the federal budget, and national economic indicators that continue to reflect mixed results, we are required to continue close scrutiny of revenues and expenditures for the balance of this fiscal year. We will maintain a balanced budget and conservatively manage the state’s spending.”

On an accrual basis, September is the second month in the 2013-2014 fiscal year.

September collections were $59.0 million less than the budgeted estimate. The general fund was under collected by $62.1 million and the four other funds were over collected by $3.1 million.

Sales tax collections were $1.9 million less than the estimate for September. The September growth rate was positive 3.50 percent.

Franchise and excise taxes combined were $65.6 million below the September budgeted estimate of $342.7 million. The September growth rate was negative 10.37 percent.

Gasoline and motor fuel collections for September increased by 4.82 percent and were $2.2 million above the budgeted estimate of $69.6 million.

Tobacco tax collections for the month were under collected by $1.7 million, and the growth rate was negative 4.97 percent.

Privilege tax collections were $0.3 million less than the budgeted estimate of $20.0 million.

Inheritance and estate tax collections were $5.3 million above the budgeted estimate.

All other taxes were over collected by a net of $3.0 million.

Year-to date collections for two months were $83.3 million less than the budgeted estimate. The general fund was under collected by $82.9 million and the four other funds were under collected by $0.4 million.

The budgeted revenue estimates for 2013-2014 are based on the State Funding Board’s consensus recommendation of December 19th, 2012 and adopted by the first session of the 108th General Assembly in April 2013. They are available on the state’s website at http://www.tn.gov/finance/bud/Revenues.shtml.

June 11th Straight Month of ‘Positive Growth’ in TN Revenue Collections

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

NASHVILLE – Total Tennessee tax collections for June were weak, but exceeded budgeted expectations. Finance and Administration Commissioner Larry Martin reports that overall June revenues were $1.2 billion, which is $3.2 million more than the state budgeted. It marks the 11th consecutive month this year in which total collections have experienced positive growth.

Sales tax collections in June were flat, while corporate tax collections exceeded the budgeted estimate. All other tax sources, taken as a group, were above the budgeted estimates.

“The year-to-date growth rate for all taxes remains low and points to an economy that is still anemic and recovering slowly,” Martin said. “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 2012-2013 fiscal year.

The general fund was over collected by $8.9 million, and the four other funds were under collected by $5.7 million.

Sales tax collections were $0.1 million less than the estimate for June. The June growth rate was positive 1.18%. For eleven months revenues are under collected by $27.8 million. The year-to-date growth rate for eleven months was positive 1.67%.

Franchise and excise taxes combined were $2.3 million above the budgeted estimate of $338.9 million. The growth rate for June was negative 8.85%. For eleven months revenues are over collected by $278.9 million and the year-to-date growth rate was 8.76%.

Privilege tax collections were $0.9 million above the June estimate. For eleven months collections are $30.1 million above the budgeted estimate.

Business tax collections were $1.2 million more than the June estimate. Year-to-date collections for eleven months are $1.4 million above the budgeted estimate.

Inheritance and estate tax collections were $7.9 million above the June estimate. For eleven months collections are $35.4 million above the budgeted estimate.

Tobacco tax collections were $2.4 million below the budgeted estimate of $27.8 million. For eleven months revenues are under collected by $11.0 million.

Gasoline and motor fuel collections for June were under collected by $4.0 million. For eleven months revenues are under collected by $22.5 million.

All other taxes for June were under collected by a net of $2.6 million.

Year-to-date collections for eleven months were $322.8 million more than the budgeted estimate. The general fund was over collected by $328.6 million and the four other funds were under collected by $5.8 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 June, compared to what’s in the revised FY 2013 budget is $16.9 million ($322.8 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.

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.

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.

July Brings in $9.9M More Taxes Than State Budgeted

Press release from the Tennessee Department of Finance & Administration; August 9, 2012: 

NASHVILLE – Tennessee revenue collections continued their upward trend in July, but at a much slower pace compared to recent months. Finance and Administration Commissioner Mark Emkes today announced a net positive growth of 4.46% over July collections of one year ago. Overall July revenues were $880.9 million, which is $9.9 million more than the state budgeted.

July marks the 12th consecutive month this year in which total collections have exceeded the budgeted estimates. July sales tax collections represent consumer spending that took place in the month of June.

“We continue to believe the growth in sales and corporate tax collections indicates a very slow economic recovery in Tennessee, but we also continue to see mixed results at the national level,” Emkes said. “The latest published leading economic indicators show that the U.S. economy decelerated in the second quarter, which causes concern at the state level.

“We’ll close fiscal year 2012, which ended June 30, with a revenue surplus which will help maintain a balanced budget in fiscal 2012-2013.”

On an accrual basis, July is the twelfth month in the 2011-2012 fiscal year.

The general fund was over collected by $2.7 million, and the four other funds were over collected by $7.2 million.

Sales tax collections were $14.7 million more than the estimate for July. The July growth rate was 3.30%. For twelve months revenues are over collected by $241.8 million. The year-to-date growth rate for twelve months was positive 6.57%.

Franchise and excise taxes combined were $0.8 million under the budgeted estimate of $55.5 million. The growth rate for July was positive 8.64%. For twelve months revenues are over collected by $308.2 million and the year-to-date growth rate was positive 22.26%.

Inheritance and estate tax collections were $10.1 million below the July estimate. For twelve months collections are $37.9 million above the budgeted estimate.

Privilege tax collections were $1.1 million above the July budgeted estimate. For twelve months collections are $9.0 million more than the budgeted estimate, and the year-to date growth rate was positive 11.71%.

Business tax collections were $1.0 million less than the July estimate. Year-to-date collections for eleven months are $15.9 million below the budgeted estimate.

Tobacco tax collections were $2.6 million below the budgeted estimate of $25.9 million. For twelve months revenues are under collected by $18.5 million.

Gasoline and motor fuel tax collections for July were over collected by $3.4 million. For twelve months revenues are under collected by $5.1 million.

All other taxes for July were over collected by a net of $5.2 million.

Year-to-date collections for twelve months were $563.8 million more than the budgeted estimate. The general fund was over collected by $543.0 million and the four other funds were over collected by $20.8 million. The FY 2012 revised budget assumed an over collection of $209.6 million in General Fund Taxes. Therefore, the amount over collected above and beyond what’s already in the budget is $333.4 million ($543.0 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. The revised estimates are reflected on pages A-74 and A-76 in the 2012-2013 Budget Document.

Year-to-date collections for 2011-2012 are subject to final accrual adjustments.

Republicans Favor State Keeping Unexpected Revenues

Lt. Gov. Ron Ramsey says he’s standing by GOP leadership’s call to bank the $554 million in extra taxes the state collected from Tennesseans, despite calls from Democrats to give it back to voters or spend it.

Democrats, in the minority on Capitol Hill, argue the state should give the money back to taxpayers by further cutting the tax on groceries or stalling college tuition hikes.

“That’s not the way this needs to be used right now,” Ramsey, R-Blountville, told reporters Thursday. “We did not know for sure how much money we would have, and again, I think it’s good fiscal policy to keep that money in the bank until we figure it out.”

The millions of dollars represent revenues collected in excess of the state’s projections for the 2012 fiscal year which ended June 30.

Over-collecting taxes without giving some of it back is “simply irresponsible,” said House Minority Leader Craig Fitzhugh, who failed to convince Republicans at the end of the session to use what he predicted to be $400 million in excess revenues to avoid cuts to higher education and further reduce the grocery tax.

Ramsey chided Democrats for wanting to count tax dollars before they were collected.

“I think we have changed the mindset of state government this year. We’re not going to do on predicted. We’re going to do on what we know,” he said.

Fitzhugh and other Democrats want the governor to call a special session to further reduce the tax on food, which lawmakers lowered from 5.5 percent to 5.25 percent this year. They also want to freeze tuition, which the Tennessee Board of Regents and University of Tennessee Board have voted to hike by as much as 8 percent.

Haslam has said he’s not interested in a “knee-jerk special session.” His administration has maintained that the state is still uncertain how much it will actually have to dish out to absorb the costs of implementing federal health care overhauls, as they’re still deciding whether to expand TennCare under the law.

An expansion of TennCare, the state’s Medicaid program for the poor, will cost as much as $1.5 billion over five years, according to the Memphis Commercial Appeal.

Kyle WantsTuition Freeze, Deeper Food-Tax Cut

Press release from the Tennessee Senate Democratic Caucus; June 13, 2012:

NASHVILLE – Senate Democratic Leader Jim Kyle called on Governor Bill Haslam and lawmakers to introduce larger cuts to the food tax and to freeze college tuition rates amidst news that the state government has nearly $225 million in excess funds.

“The Governor has said he believes we should provide the best services at the lowest cost possible,” Kyle said. “It’s time to take out the scissors and give the people of Tennessee new, lower prices on food and education.”

Lawmakers this year repealed the state’s gift and inheritance taxes, saving some of the wealthiest Tennesseans millions in current and future taxes, while approving a .25 percent decrease in the food tax – meaning middle-class Tennesseans will save only 25 cents per $100 of groceries.

Kyle also encouraged Haslam and higher education leaders to hold the line on college tuition rates. The same week the excess revenues were announced, state community colleges and universities proposed tuition increases ranging from 4 to 7 percent.

“We’re asking Tennesseans to pay more for college while saying that we have all this extra money,” Kyle said. “Something doesn’t add up.”

An analysis by Kyle’s office shows that if half of the excess revenues were allocated to higher education, the proposed per-student tuition increases would be more than covered at Tennessee Board of Regents institutions like the University of Memphis. University of Tennessee officials are expected to discuss tuition rates in the coming days.

Kyle said Wednesday that he intends to bring legislation regarding both issues when the 108th General Assembly begins in January 2013.

“We were told for months to ignore the millions of dollars in excess revenue the state was raking in,” Kyle said. “Now that we know just how much is out there, we ought to help everyday Tennesseans with it.”

May Revenues $15.6M More than Expected — 10th Month in a Row Collections Exceed Budget Estimates

Press release from the Tennessee Department of Finance & Administration; June 12, 2012:

NASHVILLE – Tennessee revenue collections continued an upward growth trend in May with a net positive growth of 3.40% over collections made in the same month last year. Finance and Administration Commissioner Mark Emkes reported today that overall May revenues were $871.1 million, which is $15.6 million more than the state budgeted.

“May marks the tenth consecutive month this year in which total collections have exceeded the budgeted estimates,” Emkes said. “While we’ve seen growth in sales tax collections for the past 26 consecutive months, the growth has slowed – and corporate tax collections for May were below the budgeted estimate.

“Because the national and global economies remain concerns, we will continue to closely monitor collections and expenditures for the remainder of this year in order to financially posture ourselves for the future.”

On an accrual basis, May is the tenth month in the 2011-2012 fiscal year.

The general fund was over collected by $12.4 million, and the four other funds were over collected by $3.2 million.

Sales tax collections were $17.2 million more than the budgeted estimate for May. The May growth rate was positive 4.40%. For ten months revenues are over collected by $200.6 million. The year-to-date growth rate for ten months was positive 6.97%.

Franchise and excise taxes combined were $4.2 million below the budgeted estimate of $44.8 million. For ten months revenues are $210.9 million over the budgeted estimate.

Inheritance and estate tax collections were $2.9 million above the May estimate. For ten months collections are $40.9 million above the budgeted estimate.

Privilege tax collections were $2.2 million more the May budgeted estimate, and for ten months collections are $2.4 million above the budgeted estimate.

Gasoline and motor fuel collections for May increased by 2.46%, and were $2.2 million more than the budgeted estimate. For ten months revenues are negative 0.57%, and $4.3 million below the budgeted estimate of $696.7 million.

Business tax collections were $9.1 million less than the May estimate and year to date for ten months collections are $12.3 million below the budgeted estimate.

Tobacco tax collections were $2.3 million above the budgeted estimate of $23.6 million. For ten months revenues are under collected in the amount of $10.0 million.

All other taxes for May were over collected by a net of $2.1 million.

Year-to-date collections for ten months were $428.5 million more than the budgeted estimate. The general fund was over collected by $412.4 million and the four other funds were over collected by $16.1 million. The FY 2012 revised budget assumed an over collection of $209.6 million in General Fund Taxes. Therefore, the amount over collected above and beyond what’s already in the budget is $202.8 million ($412.4 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. The revised estimates are reflected on pages A-74 and A-76 in the 2012-2013 Budget Document.