News release from Department of Finance and Administration
NASHVILLE, Tenn. – Tennessee tax revenues exceeded the state’s budgeted estimates for the month of February. Department of Finance and Administration Commissioner Larry Martin today announced that overall February revenues were $818.2 million, which is $20.0 million more than the state budgeted.
“February’s sales tax growth rate was the lowest we’ve seen in the past year, but receipts still managed to come in a little over the budgeted estimate,” Martin said. “Franchise and Excise taxes recorded negative growth for the month, but were marginally higher than the budgeted estimate for the month.
“Typically, more than half of our annual corporate revenues are realized in the months of April through June, so we’ll be watching corporate taxes closely through the remainder of the fiscal year.”
On an accrual basis, February is the seventh month in the 2015-2016 fiscal year.
General fund revenues were more than the budgeted estimate in the amount of $11.8 million while the four other funds that share in state tax revenues were $8.2 million more than the estimates.
Sales taxes were $8.6 million more than the estimate for February and 3.60% more than February of last year. For seven months, revenues are $226.2 million higher than estimated. The year-to-date growth rate for seven months was 6.96%.
Franchise and excise taxes combined were $0.2 million higher than the budgeted estimate in February, and the growth rate over the same month last year was negative 0.84%. For seven months, revenues are $141.1million more than the estimate and the year-to-date growth rate is 1.41%. However, adjusting for an unexpected one-time payment received last year, the underlying growth rate is 19.55%.
Gasoline and motor fuel revenues for February increased by 3.58% compared to February 2015 and were $5.2 million more than the budgeted estimate of $67.5 million. For seven months revenues have exceeded estimates by $19.9 million.
Tobacco taxes were $0.8 million less than the February budgeted estimate of $19.5 million. For seven months they are $8.4 million more than the budgeted estimate.
Inheritance and estate taxes were $1.2 million more than the February estimate. On a year-to-date basis revenues are $9.3 million more than the budgeted estimate.
Privilege taxes were $2.3 million more than the February estimate, and on a year-to-date basis, August through February, revenues are $14.9 million more than the estimate.
Business taxes were $2.3 million more than the February estimate. For seven months revenues are $2.9 million more than the budgeted estimate.
All other taxes exceeded estimates by a net of $1.0 million.
Year-to-date revenues for seven months were $439.0 million more than the budgeted estimate. The general fund recorded $407.1 million more than budgeted estimates and the four other funds $31.9 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.