|FOR IMMEDIATE RELEASE
WEDNESDAY, APRIL 8, 2009
CONTACT: LOLA POTTER
NASHVILLE, Tenn. - Tennessee revenue collections continue to fall short of budgeted estimates. Overall March revenues, which reflect February sales, came in $106.2 million less than the state budgeted for, with collections totaling $779.5 million.
“March is the eighth consecutive month this fiscal year in which sales taxes and corporate income taxes have recorded negative growth over a year ago,” Finance and Administration Commissioiner Dave Goetz said. “March also becomes the thirteenth negative growth month for sales tax collections out of the last fifteen months, starting with January 2008.”
On an accrual basis, March is the eighth month in the 2008-2009 fiscal year.
The general fund was under collected by $100.4 million and the four other funds were under collected by $5.8 million.
Sales tax collections were $57.7 million less than the estimate for March. The March growth rate was negative 8.94%. For eight months revenues are under collected by $392.4 million. The year-to-date growth rate for eight months was negative 6.32%.
Franchise and excise taxes combined were $34.8 million below the budgeted estimate of $166.5 million. For eight months revenues are under collected by $201.4 million.
Gasoline and motor fuel collections for March decreased by 5.82%. For eight months revenues are under collected by $36.8 million.
Tobacco taxes collections were $4.3 million under the budgeted estimate of $28.0 million. For eight months revenues are under collected in the amount of $8.9 million.
Year-to-date collections for eight months were $698.0 million less than the budgeted estimate. The general fund was under collected by $643.6 million and the four other funds were under collected by $54.4 million.
The budgeted revenue estimates for 2008-2009 are based on the State Funding Board’s consensus recommendation adopted by the second session of the 105th General Assembly in May of 2008.
The revised estimates for this fiscal year as presented in the 2009-2010 budget document assume an under collection in total taxes in the amount of $1.1 billion. The General Fund under collection is projected to be $1.03 billion.
By tax source, the assumed under collections are: sales tax $544.2 million; F&E taxes $336.1 million; privilege taxes $80.6 million; income tax $58.0 million; highway fund road user revenues $48.6 million, and a net under collection of $40.0 million from all other tax sources.