|FOR IMMEDIATE RELEASE
TUESDAY JULY 13, 2010
CONTACT: LOLA POTTER
NASHVILLE - Total tax collections for June were below budgeted estimates, but recorded positive growth in sales and corporate taxes. Finance and Administration Commissioner Dave Goetz today announced that overall June revenues were $1.062 billion, which is $6.2 million less than the state budgeted. June sales tax collections represent consumer spending that took place in the month of May.
“"This marks the third consecutive month in which sales tax collections recorded positive growth over the same month a year ago," Goetz said. "While the positive growth for June is small, remember that consumer spending was depressed in May as a result of the unprecedented flooding the state endured. Although we believe that Tennessee is in the early stages of economic recovery we will continue to be diligent in monitoring the state's spending in order to keep our budget in balance on a recurring basis."”
On an accrual basis, June is the eleventh month in the 2009-2010 fiscal year.
The general fund was under collected by $9.3 million, and the four other funds were over collected by $3.1 million.
Sales tax collections were $16.8 million less than the estimate for June. The June growth rate was 0.73%. For eleven months revenues are under collected by $224.7 million. The year-to-date growth rate for eleven months was negative 3.01%.
Franchise and excise taxes combined were $20.9 million above the budgeted estimate of $228.9 million. The growth rate for June was 5.17%. For eleven months revenues are over collected by $75.8 million and the year-to-date growth rate was 6.55%.
Privilege tax collections were $8,000 below the June estimate. For eleven months collections are $23.8 million below the budgeted estimate.
Business tax collections were $14.4 million less than the June estimate. Year-to-date collections for eleven months are $23.0 million below the budgeted estimate.
Inheritance and estate tax collections were $3.6 million below the June estimate. For eleven months collections are $12.1 million below the budgeted estimate.
Tobacco tax collections were $3.1 million above the budgeted estimate of $25.7 million. For eleven months revenues are over collected by $6,000.
Gasoline and motor fuel collections for June increased by 5.27%. For eleven months revenues are under collected by $8.1 million.
Year-to-date collections for eleven months were $225.5 million less than the budgeted estimate. The general fund was under collected by $179.3 million and the four other funds were under collected by $46.2 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 www.tn.gov/finance/bud/budget.html.
The State Funding board met on December 18, 2009 and adopted mid-year revised revenue ranges for 2009-2010. The revised ranges reflect growth rates ranging from negative 1.50% to negative 0.25% in total taxes, and negative 2.35% to negative 0.85% in general fund taxes. Based on the consensus recommendation, the official budgeted estimates for 2009-2010 were revised in late December.
The revised mid-year estimates are reflected on pages A-70 and A-72 in the 2010-2011 Budget Document and assume an under collection in total taxes in the amount of $161.3 million, and an under collection of $153.2 million in the general fund.
The funding board met again in March of this year and adopted final revenue ranges for 2009-2010. The board's consensus recommendation was to recognize lower growth rates than those adopted on December 18, 2009. The revised ranges reflect growth rates ranging from negative 1.77% to negative 1.29% for total taxes, and negative 2.31% to negative 1.78% in general fund taxes.
Based upon the funding board's March recommendation the revised estimates for 2009-2010 now assume an under collection in total taxes in the amount of $258.9 million, and an under collection of $231.0 million in general fund taxes.