Tag Archives: collections

June State Revenue Again Over Budget (but ‘weak’)

News release from Department of Finance and Administration:
NASHVILLE – Total Tennessee tax collections for June were weak, but exceeded budgeted expectations. Finance and Administration Commissioner Larry Martin reports that overall June revenues were $1.2 billion, which is $3.2 million more than the state budgeted. It marks the 11th consecutive month this year in which total collections have experienced positive growth.
Sales tax collections in June were flat, while corporate tax collections exceeded the budgeted estimate. All other tax sources, taken as a group, were above the budgeted estimates.
“The year-to-date growth rate for all taxes remains low and points to an economy that is still anemic and recovering slowly,” Martin said. “For the remainder of this year, we will continue to closely monitor collections and expenditures.”
On an accrual basis, June is the eleventh month in the 2012-2013 fiscal year.
The general fund was over collected by $8.9 million, and the four other funds were under collected by $5.7 million.
Sales tax collections were $0.1 million less than the estimate for June. The June growth rate was positive 1.18%. For eleven months revenues are under collected by $27.8 million. The year-to-date growth rate for eleven months was positive 1.67%.

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State Tax Collections Ahead of Projections in February

News release from Department of Finance and Administration:
NASHVILLE, Tenn. – Tennessee tax collections continued their upward trend in February. Department of Finance and Administration Commissioner Mark Emkes today announced that overall February revenues were $744.3 million, which is $5.0 million more than the state budgeted.
“Total collections in February marked the seventh consecutive positive growth month this year,” Emkes said. “Sales tax collections, reflecting January spending, recorded modest growth as did several of the smaller tax categories.
“While we continue to believe the modest growth rate in sales tax collections is indicative of a very slow but improving economy in Tennessee, we are concerned that escalating gasoline prices and the failure of Congress to enact a budget will soon begin to erode the positive growth trend we are now enjoying. We’ll monitor collections and spending and work with the General Assembly to end the fiscal year in June with a balanced budget.”
On an accrual basis, February is the seventh month in the 2012-2013 fiscal year.
The general fund was over collected by $12.0 million and the four other funds were under collected by $7.0 million.

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November, 2012, State Revenue Just Above November, 2011

News release from Department of Finance and Administration:
NASHVILLE, Tenn. – State Revenue collections for November overall showed less than a percentage point of growth. Finance and Administration Commissioner Mark Emkes today reported today that November collections were $768.2 million, which is 0.35% above November 2011. November collections include sales taxes that reflect consumer spending in October.
“We continue to believe this will be a moderate growth year, and revenue collections are proving that to be the case,” Emkes said. “We remain cautiously optimistic, recognizing that typically about one fourth of all Franchise and Excise collections are realized in the month of April. In light of that, and leading economic indicators, we will remain vigilant in monitoring our spending and revenue patterns for the remainder of this year.
“It’s important to remember we won’t see how after-Thanksgiving retail sales performed until this time next month, when we’ve collected revenues from November spending.”
On an accrual basis, November is the fourth month in the 2012-2013 fiscal year.

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Fiscal Cliff Tax Increases Could Cut TN Tax Take

Estimates of the direct impact on state government if “fiscal cliff” spending cuts take effect is in the $100 million range insofar as initial loss of federal money goes. But a longer term and deeper impact could come from tax increases and their impact on state spending and, thus, sales tax collections.
That was part of the message Wednesday at a Tennessee Advisory Commission on Intergovernmental Relations meeting. Andy Sher has a report.
If federal officials don’t resolve the so-called fiscal cliff, the impact of tax hikes on consumer spending likely will hit sales-tax dependent states like Tennessee the hardest, a tax expert warned Wednesday.
Dr. Stan Chervin said that absent an agreement in Washington, D.C., the expiration of Bush-era tax cuts and newer payroll-tax reductions will leave Tennesseans with less cash in their pockets.
“So what are you going to do with less? You’re probably going to spend less,” Chervin said. “All those things are going to reduce take-home [money] if they go away, and that’s what we use to buy stuff. And that’s how we run the state.”
About 54 cents of each state tax dollar comes from the state sales tax, which is among the highest in the nation. Unlike most states, Tennessee has no broad-based income tax.
…Chervin said federal tax increases include boosts in capital gains rates from 15 percent to 20 percent, higher income tax rates and elimination of the 2 percent payroll tax reduction pushed by Obama. Add them all up and that’s less money for most, he said.
“If you just follow the dominoes, yeah, less take-home [money], less retail sales, less sales tax — boom, boom, boom,” Chervin later told reporters. “So it is kind of scary.”

Ramsey: Keep Revenue Surplus in the Bank

By Lucas Johnson, Associated Press
NASHVILLE, Tenn. — Senate Speaker Ron Ramsey said Thursday that the state’s revenue surplus of more than a half-billion dollars should stay in the bank despite calls from Democrats to use it to offset tuition costs and provide tax relief.
The Blountville Republican spoke to reporters following a meeting at the Legislative Plaza. He said it’s bad policy to spend the money at this time because of future costs that may arise, such as expenses resulting from the new federal health care law.
“That’s not the way this should be used right now,” Ramsey said. “It’s good fiscal policy to keep that money in the bank until we figure it out.”
State Finance Commissioner Mark Emkes announced Wednesday that collections came in at $130 million above estimates in June, which brought the year-to-date surplus to $540 million.

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State Revenue Still Rising in February

News release from Department of Finance and Administration:
NASHVILLE – Tennessee tax collections continued their upward trend in February. Department of Finance and Administration Commissioner Mark Emkes today announced that overall February revenues were $726.6 million, which is $20.2 million more than the state budgeted.
“February sales tax collections, reflecting January spending, recorded the 23rd consecutive month of positive growth,” Emkes said. “While we believe the healthy growth rate in sales tax collections for February is indicative of an improving economy in Tennessee, we are concerned that escalating gasoline prices will soon begin to erode the positive growth trend we are now enjoying.
“In the months ahead, we will monitor very closely our collections and expenditure patterns and work closely with the Legislature in order to end this fiscal year with a balanced budget as constitutionally required.”

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State’s Tax Collections Up a Bit Again in July

News release from Department of Finance and Administration:
NASHVILLE – Tennessee revenue collections continued a very modest growth trend in July. Finance and Administration Commissioner Mark Emkes today announced a net positive growth of 1.17% over July collections of one year ago. Overall July revenues were $843.3 million or $19.9 million more than the state budgeted.
July marks the 12th consecutive month this year in which total collections have exceeded the budgeted estimates. July sales tax collections represent consumer spending that took place in the month of June.
“The year-to-date growth in both sales and corporate tax collections indicates a very slow economic recovery in Tennessee, and it means we must continue to cautiously move forward in managing the state’s budget,” Emkes said. “Additional concern for us at the state level is that economic indicators are showing a very slow national recovery.”
On an accrual basis, July is the twelfth month in the 2010-2011 fiscal year.
The general fund was over collected by $2.3 million, and the four other funds were over collected by $17.6 million.

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State’s Tax Take Above Estimates Again in June

News release from Department of Finance and Administration:
NASHVILLE – Total tax collections for June were above state budget estimates for the month. Finance and Administration Commissioner Mark Emkes today announced that overall June revenues were $1.07 billion, which is $31.8 million more than the state budgeted. June sales tax collections represent consumer spending that took place in the month of May.
June marks the 11th consecutive month this fiscal year in which total collections have exceeded the budgeted estimates. Sales tax collections in June recorded the 15th consecutive month of positive growth, exceeding the budgeted estimate, and corporate tax collections also performed above June expectations.
“Tennessee’s revenue collections continue to show a positive growth trend, but the latest national leading economic indicators point to a very slow economic recovery,” Emkes said. “This will require us to continue to closely monitor collections and expenditures for the remainder of this year in order to end this fiscal year with a balanced budget.”
On an accrual basis, June is the eleventh month in the 2010-2011 fiscal year.
The general fund was over collected by $31.1 million, and the four other funds were over collected by $700,000.
Sales tax collections were $28.8 million more than the estimate for June. The June growth rate was 6.32%. For eleven months revenues are over collected by $195.6 million. The year-to-date growth rate for eleven months was positive 4.60%.
Franchise and excise taxes combined were $29.6 million above the budgeted estimate of $253.2 million. The growth rate for June was 13.18%. For eleven months revenues are over collected by $47.8 million and the year-to-date growth rate was 6.99%.
Privilege tax collections were $3.7 million below the June estimate. For eleven months collections are $9.7 million below the budgeted estimate.
Business tax collections were $20.3 million less than the June estimate. Year-to-date collections for eleven months are $38.8 million below the budgeted estimate.
Inheritance and estate tax collections were $800,000 below the June estimate. For eleven months collections are $26.7 million above the budgeted estimate.
Tobacco tax collections were $1.6 million below the budgeted estimate of $29.5 million. For eleven months revenues are under collected by $7.2 million.
Gasoline and motor fuel collections for June were over collected by $800,000. For eleven months revenues are over collected by $10.7 million.
All other taxes for June were under collected by a net of $1.0 million
The budgeted revenue estimates for 2010-2011 are based on the State Funding Board’s consensus recommendation of April 7, 2010 and adopted by the second session of the 106th. General Assembly in June. They are available on the state’s website at http//www.tn.gov/finance/bud/budget.html.
The State Funding Board met on the 8th and 14th of December 2010, and again on February 7, 2011. As a result of these meetings the board adopted mid-year revised revenue ranges for 2010-2011. The board issued a formal letter addressed to the Governor and Chairman of House and Senate Finance Ways and Means Committees dated February 25, 2011 detailing the board’s actions.
The 2010-2011 revised ranges adopted by the board reflect growth rates ranging from 3.60% to 4.00% in total taxes, and 3.95% to 4.45% in general fund taxes.
Based on the board’s consensus recommendation, the official budgeted estimates for 2010-2011 were revised in March 2011.
The revised estimates are reflected on pages A-72 and A-74 in the 2011-2012 Budget Document and assume an over collection in total taxes in the amount of $198.5 million, and an over collection of $161.3 million in general fund taxes.
Year-to-date collections through June compared to the February revision are $77.4 million above the total estimate, and $67.2 million above the general fund estimate. The four other funds that share in state tax collections are $10.2 million above the revised estimate.
The funding board met again on April 12, 2011 to hear updated revenue estimating presentations on the state’s near-term economic outlook for fiscal years 2010-2011 and 2011-2012, taking final action on April 15th to revise the February ranges.
The action taken by the board in April recognized an increase at the top of the range for 2010-2011 from 4.00% to 4.15% in total taxes and from 4.45% to 4.50% in general fund taxes. The result of this action increased projected revenues for total taxes by $15.1 million and general fund taxes by $15.2 million for this fiscal year. This increase was recognized in the administration’s budget amendment and adopted by the General Assembly on Saturday May 21, 2011.
Year-to -date collections through June compared to the final action taken by the board and approved by the General Assembly are $62.3 million above the total estimate, and $52.0 million above the general fund estimate.

Predicted Increase in Business Tax Collections Fails to Materialize (so far)

A predicted increase in business taxes has not materialized after the state took over collections from county clerks, reports WPLN. A law shifting business tax collections to the state from counties was enacted two years ago at the urging of former Gov. Phil Bredesen’s administration.
The Tennessee Department of Revenue argued it was better equipped to crack down on delinquent businesses. But instead of $21 million in new revenue, collections for 2010 were only slightly higher than the prior year.
From the beginning, big city county clerks like Davidson County’s John Arriola believed it worked well for businesses to register for a license and pay their taxes all in one place – the county clerk’s office.
“We felt like we were already doing a good job, especially in the urban areas where the business taxes are collected.”
A year into the state takeover, Arriola said his office was down a million dollars in revenue. Clerks from Shelby and Knox counties testified to a special legislative committee that they too watched revenues drop instead of pick up.