|FOR IMMEDIATE RELEASE
WEDNESDAY, DECEMBER 8, 2010
CONTACT: LOLA POTTER
NASHVILLE – Total state tax collections exceeded budgeted estimates in November for the third consecutive month of this fiscal year. Finance & Administration Commissioner Mike Morrow today announced that state revenue collections for November were $732.0 million, which is 3.37% above November 2009 collections.
“November is the 8th consecutive month in which sales tax collections have experienced positive growth, pointing to what we believe to be a slowly recovering economy in Tennessee,” Morrow said. “While year-to-date over collections are encouraging, we will continue to closely monitor our spending plans in order to leave the budget in a balanced posture for the next governor.
“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 for November spending.”
On an accrual basis, November is the fourth month in the 2010-2011 fiscal year.
November collections were $5.4 million more than the budgeted estimate. The general fund was under collected by $2.0 million and the four other funds were over collected by $7.4 million.
Sales tax collections were $15.0 million more than the estimate for November. The November growth rate was positive 4.41%. Year-to-date the growth rate for four months is positive 4.04%.
Franchise and excise combined collections for November were $37.7 million, which is $2.8 million below the budgeted estimate of $40.5 million. Year-to date the growth rate for four months is positive 2.73%.
Gasoline and motor fuel collections were $7.3 million more than the budgeted estimate of $69.4 million. For four months year-to-date collections are $12.9 million above the budgeted estimate.
Tobacco tax collections for the month were under collected by $2.6 million.
Inheritance and Estate taxes were over collected by $907,000 for the month.
All other taxes were under collected by a net of $12.5 million.
Year-to-date collections for four months were $65.3 million more than the budgeted estimate. The general fund was over collected by $44.3 million and the four other funds were over collected by $21.0 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.