News release from Department of Finance and Administration:
NASHVILLE – Total tax collections for June were well above budgeted expectations. Finance and Administration Commissioner Mark Emkes reported today that overall June revenues were $1.2 billion, which is $125.4 million more than the state budgeted. It marks the 11th consecutive month this year in which total collections have exceeded the budgeted estimate. Sales tax collections in June exceeded the budgeted estimate by 4.7%, and corporate tax collections continue to outpace estimates, exceeding June expectations by 35.5%.
“The positive growth trend we are now enjoying is encouraging, however, the latest national jobs report point to an economy that is still anemic and recovering slowly,” Emkes 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 2011-2012 fiscal year.
The general fund was over collected by $127.9 million, and the four other funds were under collected by $2.5 million.
Sales tax collections were $26.6 million more than the estimate for June. The June growth rate was 6.24%. For eleven months revenues are over collected by $227.2 million. The year-to-date growth rate for eleven months was positive 6.90%.
Franchise and excise taxes combined were $98.1 million above the budgeted estimate of $276.3 million. The growth rate for June was 32.39%. For eleven months revenues are over collected by $308.9 million and the year-to-date growth rate was 22.73%.
Privilege tax collections were $5.5 million above the June estimate. For eleven months collections are $7.9 million above the budgeted estimate.
Business tax collections were $2.6 million less than the June estimate. Year-to-date collections for eleven months are $14.9 million below the budgeted estimate.
Inheritance and estate tax collections were $7.2 million above the June estimate. For eleven months collections are $48.0 million above the budgeted estimate.
Tobacco tax collections were $6.0 million below the budgeted estimate of $28.8 million. For eleven months revenues are under collected by $16.0 million.
Gasoline and motor fuel collections for June were under collected by $4.2 million. For eleven months revenues are under collected by $8.4 million.
All other taxes for June were over collected by a net of $800,000.
Year-to-date collections for eleven months were $553.9 million more than the budgeted estimate. The general fund was over collected by $540.3 million and the four other funds were over collected by $13.6 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 $330.7 million ($540.3 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.