|FOR IMMEDIATE RELEASE
WEDNESDAY, MARCH 12, 2014
CONTACT: LOLA POTTER
NASHVILLE - Tennessee tax collections were once again below the budgeted estimate in February, a trend that began in August of last year. Department of Finance and Administration Commissioner Larry Martin today announced that overall February revenues were $737.2 million, which is $37.2 million less than the state budgeted.
“February sales tax collections, which reflect consumer spending in January, recorded modest growth for the month as did franchise and excise taxes along with several of the smaller tax categories,” Martin said.
“The modest growth rate in sales tax collections continues to indicate very slow economic improvement, and we continue to be concerned with the lack of positive growth in our corporate tax collections. We will remain cautiously optimistic while managing spending for a balanced budget.”
On an accrual basis, February is the seventh month in the 2013-2014 fiscal year.
The general fund was under collected by $40.2 million and the four other funds were over collected by $3.0 million.
Sales tax collections were $14.8 million less than the estimate for February. The February growth rate was positive 1.10%. The year-to-date growth rate for seven months is positive 3.33%.
Franchise and excise taxes combined were $8.0 million below the budgeted estimate of $46.1 million. For seven months revenues are under collected by $215.3 million. The year-to-date growth rate for seven months is negative 14.10%.
Gasoline and motor fuel collections for February decreased by 0.24%, and were $3.6 million below the budgeted estimate of $68.1 million. For seven months revenues are under collected by $4.3 million.
Tobacco tax collections were $4.0 million over the budgeted estimate of $19.5 million. For seven months revenues are under collected in the amount of $2.3 million.
Inheritance and estate taxes were over collected by $2.1 million for the month. Year-to-date collections for seven months are $17.2 million more than the budgeted estimate.
Privilege tax collections were $2.6 million less than the February estimate, and on a year-to-date basis, August through February, collections are $7.0 million below the estimate.
Business tax collections were $12.6 million below the February budgeted estimate, and for seven months collections are $11.4 million less than the budgeted estimate of $63.6 million.
All other taxes were under collected by a net of $1.7 million.
Year-to-date collections for seven months were $259.9 million less than the budgeted estimate.
The general fund was under collected by $259.8 million and the four other funds were under collected by $0.1 million.
The budgeted revenue estimates for 2013-2014 are based on the State Funding Board’s consensus recommendation of December 19th, 2012 and adopted by the first session of the 108th General Assembly in April 2013. They are available on the state’s website at http://www.tn.gov/finance/bud/Revenues.shtml.
The Funding Board met on December 10, 2013 to hear updated revenue projections from the state’s various economists. The board met again on December 17 and adopted revised revenue ranges for 2013-2014. The revised ranges assume an under collection from the July 2013 budgeted estimate in the amount of $111.2 million to $134.5 million in total taxes and in the amount of $126.1 million to $145.6 million in general fund taxes for the current fiscal year.