News release from Department of Finance and Administration
NASHVILLE, Tenn. – Tennessee’s revenue collections exceeded budgeted estimates for the second month of the state’s fiscal year. Finance and Administration Commissioner Larry Martin today reported that overall September’s revenues were $1.2 billion, which is $82.2 million more than September 2014 collections and $113.4 million more than the budgeted estimate. The growth rate for September was 7.14%.
“Sales tax collections reflecting August consumer activity show growing consumer confidence in our economy,” Martin said. “While corporate tax collections posted positive double digit growth for the month we need to be cautious about the sustainability of our franchise and excise tax growth for the remainder of the year.
“We’re also watching national and global economic indicators with concern about economic uncertainty surrounding the European and Asian markets. As always, we need to continue to monitor revenue collections and manage our spending.”
On an accrual basis, September is the second month in the 2015-2016 fiscal year.
For September, the general fund was over collected by $106.2 million and the four other funds were over collected by $7.2 million.
Sales tax collections were $24.4 million more than the estimate for September. The September growth rate was positive 6.45%. Year-to-date collections are 7.36% above this time last year.
Franchise and excise taxes combined were $70.9 million more than the September budgeted estimate of $289.9 million. The September growth rate was positive 13.27%, and on a year-to-date basis is 5.52%.
Gasoline and motor fuel collections for September increased by 4.16% and were $4.5 million more than the budgeted estimate of $72.3 million.
Tobacco tax collections for the month were over collected by $2.4 million, and the growth rate was positive 6.38%.
Privilege tax collections were $2.8 million more than the budgeted estimate of $20.5 million.
Business Tax collections were $0.8 million above the budgeted estimate for September.
Inheritance and estate tax collections were $4.6 million more than the budgeted estimate.
All other taxes were over collected by a net of $3.0 million.
Year-to date collections for two months were $132.5 million more than the budgeted estimate. The general fund was over collected by $116.8 million and the four other funds that share in state tax revenues were over collected by $15.7 million.
The budgeted revenue estimates for 2015-2016 are based on the State Funding Board’s consensus recommendation of December 16th, 2014 and adopted by the first session of the 109th General Assembly in April 2015. Also incorporated in the estimates are any changes in revenue enacted during the 2015 session of the General Assembly. These estimates are available on the state’s website at http://www.tn.gov/finance/article/fa-budget-rev.