NASHVILLE –State revenue collections for August were $771.2 million, or 4.70% below August 2007 collections.
“While we budgeted zero growth in franchise and excise taxes and 2.37% in sales tax collections for the year, the month of August was well below the estimates," Finance and Administration Commissioner Dave Goetz said. “With one month of collections coming in at negative growth rates, we hope collections for the rest of the year can balance the poor collections in August.”
On an accrual basis, August is the first month in the 2008-2009 fiscal year.
August collections were $56.5 million less than the budgeted estimate. The general fund was under collected by $50.1 million and the four other funds were under collected by $6.4 million.
Sales tax collections were $21.3 million less than the estimate for August. The August growth rate was negative 1.27%.
Franchise and excise taxes combined were $25.7 million below the budgeted estimate of $41.2 million.
Gasoline and motor fuel collections decreased by 4.20% and were $4.0 million below the budgeted estimate of $71.3 million.
Tobacco tax collections for the month were under collected by $2.7 million.
Inheritance tax collections were $1.1 million over the budgeted estimate.
All other taxes were under collected by a net of $ 3.9 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.