|FOR IMMEDIATE RELEASE
MONDAY, OCTOBER 10, 2011
CONTACT: LOLA POTTER
NASHVILLE – Economic recovery continues a slow pattern upward in Tennessee. Finance and Administration Commissioner Mark Emkes reported today that overall September revenues were $1.013 billion, which is 3.66% above September 2010 collections. It’s the fourteenth consecutive month in which total collections exceeded the budgeted estimates.
“We are very pleased with the positive growth rates in September tax collections, particularly in the sales tax category, where we see the best indication of renewed consumer optimism in Tennessee,” Emkes said. “That’s the largest monthly growth we’ve seen in the last 69 months, dating back to January 2006.
“While this is good news, the uncertainty surrounding resolution of the federal budget and national economic indicators require us to continue with close scrutiny over state expenditures so that we keep the state’s budget in balance.”
On an accrual basis, September is the second month in the 2011-2012 fiscal year.
September collections were $4.4 million more than the budgeted estimate. The general fund was over collected by $4.5 million and the four other funds were under collected by $0.1 million.
Sales tax collections were $12.8 million more than the estimate for September. The September growth rate was 8.33%.
Franchise and excise taxes combined were $16.1 million below the September budgeted estimate of $268.9 million. The September growth rate was negative 6.21%.
Gasoline and motor fuel collections for September decreased by 6.30% and were $3.0 million below the budgeted estimate of $73.0 million.
Tobacco tax collections for the month were under collected by $0.7 million, but the growth rate was positive 4.28%.
Privilege tax collections were $1.9 million less than the budgeted estimate of $17.3 million.
Inheritance and Estate tax collections were $12.4 million above the budgeted estimate.
All other taxes were over collected by a net of $0.9 million.
Year-to date collections for two months were $23.6 million more than the budgeted estimate. The general fund was over collected by $22.8 million and the four other funds were over collected by $0.8 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.