News release from Department of Finance and Administration
NASHVILLE, Tenn. – Growth in sales tax collections and a large one-time corporate payment contributed to growth in Tennessee revenue collections for October. Finance and Administration Commissioner Larry Martin reported today that collections for October were $970.8 million, which is 11.06% more than October 2014, and $90.7 million in excess of the budgeted estimate.
“The sales tax, which is our best economic indicator, reflected relatively strong growth for the month and recorded the strongest first quarter growth since 2004, which is extremely encouraging,” Martin said. “Franchise and excise taxes were also strong, pushed by a substantial non-recurring tax payment from a large corporation. That’s not an unusual occurrence, but it’s important for us to recognize that we can’t expect that every month.
“Calendar year tax filers also make October unusual because that’s when they are allowed to request a refund or pay an underpayment of taxes.”
On an accrual basis, October is the third month in the 2015-2016 fiscal year.
General fund collections for October were $91.0 million more than the budgeted estimate, and the four other funds that share in state tax collections were $0.3 million less than the estimate.
Sales tax collections were $36.8 million more than the estimate for October. The October growth rate was 7.73%. The year-to-date growth rate was positive 7.48%.
Franchise and excise combined collections for October were $77.4 million, which is $39.0 million more than the budgeted estimate of $38.4 million.
Gasoline and motor fuel collections increased by 3.17% and they were $2.2 million more than the budgeted estimate of $73.2 million.
Tobacco tax collections for the month were over collected by $0.6 million.
Privilege tax collections were $3.1 million more than the budgeted estimate of $25.7 million.
Inheritance and Estate taxes were over collected by $0.6 million for the month.
Business tax collections were $2.7 million more than the October estimate.
Hall income taxes were over collected by $2.8 million in October.
All other taxes were over collected by a net of $2.9 million.
Year-to-date collections for three months were $223.3 million more than the budgeted estimate. The general fund was over collected by $207.8 million and the four other funds were over collected by $15.5 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/bud/Revenues.shtml.