News release from Department of Finance and Administration:
NASHVILLE, Tenn. – Tennessee tax collections continued their upward trend in February. Department of Finance and Administration Commissioner Mark Emkes today announced that overall February revenues were $744.3 million, which is $5.0 million more than the state budgeted.
“Total collections in February marked the seventh consecutive positive growth month this year,” Emkes said. “Sales tax collections, reflecting January spending, recorded modest growth as did several of the smaller tax categories.
“While we continue to believe the modest growth rate in sales tax collections is indicative of a very slow but improving economy in Tennessee, we are concerned that escalating gasoline prices and the failure of Congress to enact a budget will soon begin to erode the positive growth trend we are now enjoying. We’ll monitor collections and spending and work with the General Assembly to end the fiscal year in June with a balanced budget.”
On an accrual basis, February is the seventh month in the 2012-2013 fiscal year.
The general fund was over collected by $12.0 million and the four other funds were under collected by $7.0 million.
Sales tax collections were $3.0 million more than the estimate for February. The February growth rate was positive 2.42%. The year-to-date growth rate for seven months is positive 2.00%.
Franchise and excise taxes combined were $0.2 million above the budgeted estimate of $37.7 million. For seven months revenues are over collected by $113.8 million. The year-to-date growth rate for seven months is 8.88%.
Gasoline and motor fuel collections for February decreased by 3.26%, and were $6.1 million below the budgeted estimate of $70.7 million. For seven months revenues are under collected by $15.4 million.
Tobacco tax collections were $3.7 million over the budgeted estimate of $20.4 million. For seven months revenues are under collected in the amount of $4.8 million.
Inheritance and estate taxes were over collected by $3.5 million for the month. Year to date collections for seven months are $10.6 million more than the budgeted estimate.
Privilege tax collections were $2.0 million more than the February estimate, and on a year to date basis, August through February, collections are $15.6 million above the estimate.
All other taxes were under collected by a net of $1.3 million.
Year-to-date collections for seven months were $94.0 million more than the budgeted estimate. The general fund was over collected by $106.2 million and the four other funds were under collected by $12.2 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.