News release from Department of Finance & Administration:
NASHVILLE, Tenn. – Tennessee tax collections continued an overall upward trend in January, even though sales tax collections were worse than the previous year. January sales tax collections represent retail activity that occurred during December. Finance and Administration Commissioner Mark Emkes today announced that overall January revenues were $1.1 billion, which is $15.4 million more than the state budgeted. It’s the sixth consecutive month of overall positive growth this fiscal year, with corporate tax collections, once again, contributing heavily to the upward trend.
“This marks the first month this year that we’ve recorded negative growth in sales tax collections,” Emkes said. “We believe it’s the result of an aggressive November holiday retail marketing strategy, and two additional days of after ‘Black Friday’ shopping, compared to November of 2011.
“Total collections in January seem to indicate that Tennessee continues to slowly recover from the recession, which is the national trend as well. It means we must continue to closely monitor spending and revenues, working with the General Assembly to end the fiscal year with a balanced budget.”
On an accrual basis, January is the sixth month in the 2012-2013 fiscal year.
The general fund was over collected by $10.1 million and the four other funds were over collected by $5.3 million.
Sales tax collections were $15.1 million less than the estimate for January. The January growth rate was negative 0.30%. For six months revenues are under collected by $33.4 million. The year-to-date growth rate for six months was positive 1.94%.
Franchise and excise taxes combined were $22.1 million above the budgeted estimate of $172.1 million. For six months revenues are over collected by $113.5 million.
Gasoline and motor fuel collections for January increased by 0.18% and were $2.5 million above the budgeted estimate of $70.2 million. For six months revenues are under collected by $9.3 million.
Tobacco tax collections were $1.8 million below the budgeted estimate of $20.1 million, and for six months they are $8.5 million under the budgeted estimate.
Inheritance and estate taxes were over collected by $2.7 million for the month. Year to date collections for six months are $7.1 million more than the budgeted estimate.
Privilege tax collections were $2.8 million more than the January estimate, and on a year to date basis, August through January, collections are $13.6 million above the estimate.
All other taxes were over collected by a net of $2.2 million.
Year-to-date collections for six months were $89.0 million more than the budgeted estimate. The general fund was over collected by $94.2 million and the four other funds were under collected by $5.2 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.