NASHVILLE – The anticipated seasonal increase in franchise and excise tax collections helped put state revenues above the budgeted estimate for April. Finance and Administration Commissioner Dave Goetz reported today that overall April revenues were $117.8 million more than the state budgeted.
“This continued strong revenue growth is in line with what the state Funding Board has advised us to expect as we move through the last quarter of the fiscal year,” Goetz said. “Franchise and excise taxes usually spike in April and the other growth factor is the sales tax, driven primarily by construction, building materials, furniture stores, and the hospitality industry.”
Franchise and excise taxes are privilege taxes imposed on corporations, limited partnerships, limited liability companies and business trusts in the state and are due annually the 15th day of the fourth month following the close of books and records – which is April. Quarterly estimated franchise and excise payments are due 15th day of the fourth, sixth, and ninth months of the current tax year and the 15th day of the first month of the next succeeding tax year.
On an accrual basis, April is the ninth month in the 2005-2006 fiscal year. Department of Revenue collections were $1,290.3 million.
The general fund was $102.8 million overcollected and the four other funds overcollected by $15.0 million.
Sales tax collections were $26.7 million more than the estimate for April. For nine months revenues were overcollected by $88.2 million.
Franchise and excise taxes were $53.9 million more than the estimate of $333.3 million. For nine months revenues were $62.1 million overcollected.
Gasoline and motor fuel collections decreased by 2.46% but were $5.5 million above the budgeted estimate of $67.1 million. For nine months, collections were $11.3 million more than the estimate.
Year-to-date collections for nine months were $226.7 million more than the budgeted estimate. The general fund was overcollected by $205.9 million and the four other funds were overcollected by $20.8 million.
The revised estimates presented in the new budget document assume an $86 million surplus in sales tax collections, a surplus of $61.6 million in franchise and excise taxes, and a general fund surplus of $177.4 million.The budgeted revenue estimates are based upon the State Funding Board’s consensus recommendation adopted by the first session of the 104th General Assembly in May of last year