News release from Department of Finance and Administration:
NASHVILLE – Tennessee revenue collections reflected mixed results in March. Finance and Administration Commissioner Larry Martin today reported that overall March revenues were $955.8 million. The general fund was under collected by over $4 million for March and by $263.9 million year-to-date.
“March collections continued to reflect weaker than anticipated revenues from the corporate sector, while sales tax collections were stronger,” Martin said. “We believe the recent increase in retail spending is a reflection of renewed consumer confidence and indicates that the economy is slowly recovering. This growth is important in meeting current revenue projections on which the approved budget amendment was based.
“About a fourth of our corporate income taxes often – but not always – occur in the month of April. We will work with the legislature and others to manage the state’s spending and resources regardless of the economic climate, as the state has always done.”
On an accrual basis, March is the eighth month in the 2013-2014 fiscal year. Total tax collections in March were 2.10% above the previous year.
The general fund was under collected by $4.1 million and the four other funds were over collected by $6.9 million.
Sales tax collections were $9.4 million more than the estimate for March. The March growth rate was positive 5.51%. For eight months revenues are under collected by $23.4 million. The year-to-date growth rate for eight months was positive 3.58%.
Franchise and excise taxes combined were $11.7 million below the budgeted estimate of $199.9 million. For eight months revenues are under collected by $227.0 million. The year-to-date growth rate for eight months was negative 13.51%.
Gasoline and motor fuel collections for March increased by 11.78% and were $7.4 million above the budgeted estimate. For eight months revenues are over collected by $3.1 million.
Tobacco taxes collections were $4.6 million under the budgeted estimate of $23.6 million. For eight months revenues are under collected in the amount of $6.9 million.
Inheritance and estate taxes were over collected by $0.4 million for the month. Year-to-date collections for eight months are $17.6 million more than the budgeted estimate.
Privilege tax collections were $33,000 less than the March estimate, and on a year-to-date basis, August through March, collections are $7.0 million below the estimate.
Business tax collections were $3.7 million above the March estimate.
All other taxes were under collected by a net of $1.8 million.
Year-to-date collections for seven months were $257.0 million less than the budgeted estimate. The general fund was under collected by $263.9 million and the four other funds were over collected by $6.9 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 http://www.tn.gov/finance/bud/Revenues.shtml.
The Funding Board met on December 10, 2013 to hear updated revenue projections from the state’s various economists. The board met again on December 17 and adopted revised revenue ranges for 2013-2014. The revised ranges assume an under collection from the July 2013 budgeted estimate in the amount of $111.2 million to $134.5 million in total taxes and in the amount of $126.1 million to $145.6 million in general fund taxes for the current fiscal year.