NASHVILLE – Sales tax collections for February were more than the state estimated, keeping state revenues above budgeted estimates. Finance and Administration Commissioner Dave Goetz reported today that February revenues were above the budgeted estimate, at $12.2 million more than the state budgeted.
“The primary drivers in sales tax collections for February were building materials and home furnishings, which points to consumer confidence in Tennessee’s economy,” Goetz said. “While it’s certainly an encouraging sign for our economy, we must move forward cautiously in order to maintain our fiscal stability."
On an accrual basis, February is the seventh month in the 2005-2006 fiscal year. Department of Revenue collections were $657 million.
The general fund was $14 million overcollected and the four other funds undercollected by $1.8 million.
Sales tax collections were $21.5 million more than the estimate for February. For seven months revenues were overcollected by $50.2 million.
Franchise and excise taxes were $9.7 million less than the estimate of $26 million. For seven months revenues were $12.6 million undercollected.
Gasoline and motor fuel collections decreased by 4.74% and were $2.1 million less than the budgeted estimate of $69.5 million. For seven months, collections were $7.1 million more than the estimate.
Year-to-date collections for seven months were $75.3 million more than the budgeted estimate. The general fund was overcollected by $67.5 million and the four other funds were overcollected by $7.8 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.