|FOR IMMEDIATE RELEASE
MONDAY, DECEMBER 14, 2009
CONTACT: LOLA POTTER
NASHVILLE – State tax collections fell below budgeted estimates in November, for the fourth consecutive month of the fiscal year that began on July 1, 2009. Finance & Administration Commissioner Dave Goetz today announced that state revenue collections for November were $708.2 million, which is 0.52% below November 2008 collections. November collections reflect consumer spending in October.
“November is the 18th consecutive month in which sales tax collections have experienced negative growth,” Goetz said. “If there’s a bright spot, it’s worth noting that the growth rate for sales tax collections in November, while still negative, fared slightly better than the month before, when it was negative 7.8 percent.”
“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 2009-2010 fiscal year.
November collections were $13.5 million less than the budgeted estimate. The general fund was under collected by $8.1 million and the four other funds were under collected by $5.4 million.
Sales tax collections were $21.2 million less than the estimate for November. The November growth rate was negative 4.45%. Year-to-date the growth rate is negative 7.52%.
Franchise and excise combined collections for November were $42.3 million, which is $11.6 million above the budgeted estimate of $30.7 million.
Gasoline and motor fuel collections were $5.3 million less than the budgeted estimate of $72.5 million.
Tobacco tax collections for the month were over collected by $4.3, with November collections at $27.8 million.
Inheritance and Estate taxes were under collected by $3.7 million for the month.
All other taxes were over collected by a net of $600,000.
Year-to date collections for four months were $114.8 million less than the budgeted estimate. The general fund was under collected by $96.3 million and the four other funds were under collected by $18.5 million.
The budgeted revenue estimates for 2009-2010 are based on the State Funding Board’s consensus recommendation adopted by the first 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.