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TN January Tax Collections Exceed Budgeted Expectations

Press release from the Tennessee Department of Finance & Administration; February 13, 2015:

NASHVILLE, Tenn. – Tennessee’s total tax collections exceeded budgeted expectations in January, driven by strong holiday consumer spending and unexpected one-time collections in corporate taxes.  Finance and Administration Commissioner Larry Martin today announced that overall January revenues were $1.3 billion, which is $219.5 million more than the state budgeted.

“January sales tax collections, reflecting consumer spending that occurred during December, posted the largest monthly growth rate we’ve experienced for the past 33 months, and we recorded our strongest second quarter growth since 2006,” Martin said. “We believe this month’s growth was heavily influenced by several factors, including aggressive holiday retail marketing, continued reduction in the unemployment rate, lower gasoline prices, and an overall improving economy.

“It’s important to note that all corporate payments, including one-time payments, are received throughout the year based on estimates, and reconciled at a later point with their final corporate filings.  Although good news, one-time payments, when identified, are separated from our recurring tax base and used only to support one-time expenditures and uses. As always, the state will keep the budget in balance by working closely with the legislature.”

On an accrual basis, January is the sixth month in the 2014-2015 fiscal year.

The general fund was over collected by $214.1 million and the four other funds were over collected by $5.4 million.

Sales tax collections were $34.2 million more than the estimate for January.  The January growth rate was positive 7.80%. For six months revenues are over collected by $132.4 million. The year-to-date growth rate for six months was positive 6.76%.

Franchise and excise taxes combined were $171.4 million more than the budgeted estimate of $151.9 million. For six months revenues are over collected by $158.0 million.

Gasoline and motor fuel collections for January increased by 10.68% and were $2.4 million above the budgeted estimate of $71.3 million.  For six months revenues are over collected by $10.7 million.

Motor Vehicle Registration Tax collections were $3.0 million more than the budgeted estimate for January and the growth rate was positive 5.56%.

Tobacco tax collections were $2.7 million more than the budgeted estimate of $18.1 million, and for six months they are $2.6 million under the budgeted estimate.

Inheritance and estate taxes were over collected by $4.5 million for the month. Year-to-date      collections for six months are $13.9 million more than the budgeted estimate.

Privilege tax collections were $1.9 million less than the January estimate, and on a year-to-date basis, August through January, collections are $5.1 million above the estimate.

Business tax collections were $0.7 million more than the January estimate. For six months revenues are $13.8 million more than the budgeted estimate.

All other taxes were over collected by a net of $2.5 million.

Year-to-date collections for six months were $343.9 million more than the budgeted estimate. The general fund was over collected by $323.4 million and the four other funds were over collected by $20.5 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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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

State Tax Collections Down in October

Press release from the Tennessee Department of Finance & Administration; November 8, 2013:

NASHVILLE – Tennessee revenue collections for October fell below the previous year, and below the budgeted estimate. Finance and Administration Commissioner Larry Martin reported today that collections for October were $827.1 million, which is 1.16% below October 2012.

“We are very disappointed with the negative growth rates reported in corporate tax collections for October and the preceding two months,” Martin said. “However, the sales tax is our best economic indicator, and it reflects modest growth for the month and first quarter of 2013-2014.

“The national and state leading economic indicators continue to indicate a very slow recovery is in progress, and it calls on us to continue to be diligent in monitoring our spending and revenue patterns for the remainder of this year. We are committed to keeping Tennessee´s budget balanced”.

On an accrual basis, October is the third month in the 2013-2014 fiscal year.

October collections were $17.8 million less than the budgeted estimate. The general fund was under collected by $13.7 million and the four other funds were under collected by $4.1 million.

Sales tax collections were $8.3 million less than the estimate for October. The October growth rate was 2.91%. The year-to-date growth rate was positive 3.38%.

Franchise and excise combined collections for October were $43.2 million, and $6.7 million below the budgeted estimate of $49.9 million.

Gasoline and motor fuel collections decreased by 10.83% and they were $4.6 million below the budgeted estimate of $72.5 million.

Tobacco tax collections for the month were under collected by $190,000.

Privilege tax collections were $341,000 below than the budgeted estimate of $24.8 million.

Inheritance and Estate taxes were over collected by $4.6 million for the month.

Business tax collections were $1.8 million below the October estimate.

All other taxes were under collected by a net of $0.5 million.

Year-to date collections for three months were $101.2 million less than the budgeted estimate. The general fund was under collected by $96.6 million and the four other funds were under collected by $4.6 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 www.tn.gov/finance/bud/Revenues.shtml.

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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.