News release from Department of Finance and Administration:
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.