NASHVILLE – Business tax collections offset a drop in sales tax collections for January in Tennessee. State Finance & Administration Commissioner Dave Goetz today reported that overall January revenues were nearly $1.1 billion and $110,000 less than the state budgeted.
“This is the first time in more than three decades that sales tax receipts for December dropped below the previous year, yielding a negative growth rate,” Goetz said. “It confirms what retailers have already reported, that consumer spending was disappointing in December.”
On an accrual basis, January is the sixth month in the 2007-2008 fiscal year.
The general fund was over collected by $3.0 million and the four other funds were under collected by $3.1 million.
Sales tax collections were $26.6 million less than the estimate for January. The January growth rate was a negative 1.36%. For six months revenues are under collected by $86.1 million. The year-to-date growth rate for six months was 2.39%.
Franchise and excise taxes combined were $37.8 million above the budgeted estimate of $142.8 million. For six months revenues are under collected by $35.7 million.
Gasoline and motor fuel collections for January decreased by 10.53% and were $171,000 below the budgeted estimate of $71.5 million. For six months revenues are over collected by $2.0 million.
Tobacco tax collections were $3.3 million below the budgeted estimate of $26.5 million, and for six months they are $43.6 million under the budgeted estimate.
Year-to-date collections for six months were $182.2 million less than the budgeted estimate. The general fund was under collected by $183.2 million and the four other funds were over collected by $1.0 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.