NASHVILLE – Lower than projected sales tax collections brought total tax revenues below the amount budgeted for February. Finance and Administration Commissioner Dave Goetz today announced that overall revenues for February were $728.3 million or $20.8 million less than the state budgeted.
“With sales tax collections trending down for the last two months, we are looking to see if business taxes in March and April will help support our budget,” Goetz said. “We may have to look for more savings in the current fiscal year, but we have faced tougher conditions and managed our way through.”
On an accrual basis, February is the seventh month in the 2007-2008 fiscal year.
The general fund was under collected by $28.2 million and the four other funds were over collected by $7.4 million.
Sales tax collections were $18.4 million less than the estimate for February. The February growth rate was a negative 0.92%. The year-to-date growth rate for seven months is 1.97%.
Franchise and excise taxes combined were $5.9 million below the budgeted estimate of $44.1 million. For seven months revenues are under collected by $41.6 million.
Gasoline and motor fuel collections for February increased by 10.96%. For seven months revenues are over collected by $9.6 million.
Tobacco tax collections were $2.8 million under the budgeted estimate of $25.9 million. For seven months revenues are under collected in the amount of $46.5 million.
Year-to-date collections for seven months were $203.0 million less than the budgeted estimate. The general fund was under collected by $211.5 million and the four other funds were over collected by $8.5 million.
The budgeted revenue estimates for 2007-2008 are based on the State Funding Board’s consensus recommendation adopted by the first session of the 105th General Assembly in June of 2007.
The revised estimates for this fiscal year as presented in the 2008-2009 budget document assumes an under collection in total taxes in the amount of $165.4 million. By tax source the assumed under collections are: Sales tax $62.8 million; F&E taxes $54.8 million; tobacco taxes $30.0 million, privilege taxes $27.6 million; and, a net over collection of $9.8 million from all other tax sources. The General Fund under collection is projected to be $180.0 million.