|FOR IMMEDIATE RELEASE
WEDNESDAY, JANUARY 13, 2010
CONTACT: LOLA POTTER
NASHVILLE – The state’s fiscal year continues its trend of negative tax revenue growth, with tax collections falling below budgeted estimates again in December. Finance and Administration Commissioner Dave Goetz today announced that state revenue collections for December – reflecting November retail sales activity - were $766.7 million, which is $54.2 million less than the state budgeted.
“December tax collections represent the 19th consecutive month of negative sales tax growth,” Goetz said. “At the end of the fiscal year, on June 30, we’ll have to adjust for any under collection in the current fiscal year, and make sure our budget for fiscal year 2010-2011 reflects the revenue base available moving forward.”
On an accrual basis, December is the fifth month in the 2009-2010 fiscal year.
The general fund was under collected by $50.8 million and the four other funds were under collected by $3.4 million.
Sales tax collections were $16.6 million less than the estimate for December. The December growth rate was negative 2.88%. For five months revenues are under collected by $138.6 million, and the growth rate is negative 6.65%.
Franchise and excise taxes combined were $29.5 million below the budgeted estimate of $143.8 million. For five months revenues are under collected by $5.4 million.
Gasoline and motor fuel collections for December decreased by 2.70% and they were $4.3 million below the budgeted estimate of $66.7 million. For five months revenues are under collected by $9.9 million.
Tobacco tax collections were $5.6 million below the budgeted estimate of $25.7 million, and for five months they are $3.8 million above the budgeted estimate.
Inheritance and estate taxes were over collected by $2.6 million for the month.
All other taxes were under collected by a net of $800,000.
Year-to-date collections for five months were $169 million less than the budgeted estimate. The general fund was under collected by $147.1 million and the four other funds were under collected by $21.9 million.
The budgeted revenue estimates for 2009-2010 are based on the State Funding Board’s consensus recommendation adopted by the second session of the 106th General Assembly in May of 2009. and are available on the state’s Web site at http//www.tn.gov/finance/bud/budget.html.