Nashville – Sales tax collections for January were more than the state estimated, making up for lower-than-expected franchise and excise tax collections. Finance and Administration Commissioner Dave Goetz reported today that January revenues were only slightly above the budgeted estimate, at $240,000 more than the state budgeted.
“Overall, revenues are on target for what we would expect, considering that we typically prepare our budget on the conservative side of projections,” Goetz said.
On an accrual basis January is the sixth month in the 2005-2006 fiscal year. Department of Revenue collections were $954.3 million.
The general fund was $2.6 million undercollected and the four other funds overcollected by $2.8 million.
Sales tax collections were $25.9 million more than the estimate in January. For six months revenues were overcollected by $28.6 million.
Franchise and excise taxes were $30.3 million less than the estimate of $149.3 million. For six months revenues were $2.9 million undercollected.
Gasoline and motor fuel collections increased by 2.56% and were $2.1 million more than the budgeted estimate of $69.2 million. For six months, collections were $9.2 million more than the estimate.
Year-to-date collections for six months were $63.1 million more than the budgeted estimate. The general fund was overcollected by $53.5 million and the four other funds were overcollected by $9.5 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.