NASHVILLE, Tenn. – State revenue collections for October were $709.1 million, or less than 1% above October 2007 collections.
“October is the third consecutive month this fiscal year in which sales taxes and corporate income taxes have experienced negative growth rates,” Finance and Administration Commissioner Dave Goetz said. “We continue to be concerned with the year-to-date negative growth in our tax collections, but we are completely committed to balancing the state’s budget in a responsible manner during this extraordinary national economic downturn.”
On an accrual basis, October is the third month in the 2008-2009 fiscal year.
October collections were $75.8 million less than the budgeted estimate. The general fund was under collected by $72.0 million and the four other funds were under collected by $3.8 million.
Sales tax collections were $40.9 million less than the estimate for October. The October growth rate was negative 4.71 %. Year-to-date the growth rate is negative 3.14%.
Franchise and excise combined collections for October were negative $17.9 million, and they were $23.7 million below the budgeted estimate of $5.8 million.
Gasoline and motor fuel collections decreased by 16.21% and they were $10.1 million below the budgeted estimate of $73.9 million.
Tobacco tax collections for the month were over collected by $400,000, and they were $2.7 million over October 2007 collections.
Inheritance and Estate taxes were under collected by $400,000 for the month.
All other taxes were under collected by a net $1.1 million.
Year-to date collections for three months were $217.7 million less than the budgeted estimate. The general fund was under collected by $200.2 million and the four other funds were under collected by $17.5 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.