NASHVILLE – Tennessee's continued economic progress has resulted in better than budgeted revenue growth for the month of June. Corporate tax revenues continue to outperform projections, as overall June revenues came in at $97.3 million more than the state budgeted.
“It’s clearly an indication that the business climate continues to excel in Tennessee,” Finance and Administration Commissioner Dave Goetz said. “Tennessee continues to attract new employers to the state and expand existing businesses, but the other real success is how we have managed our revenues to reflect our goals in education and jobs.”
On an accrual basis, June is the eleventh month in the 2005-2006 fiscal year. Department of Revenue collections were $1,104 5 million.
The general fund was $97.0 million overcollected and the four other funds overcollected by $.3 million.
Sales tax collections were $30.7 million more than the estimate for June. For eleven months revenues were overcollected by $134.1 million.
Franchise and excise taxes were $45.6 million more than the estimate of $210.3 million. For eleven months revenues were $121.9 million overcollected.
Gasoline and motor fuel collections were $1.4 million below the budgeted estimate of $72.0 million. For eleven months, collections were $10.0 million more than the estimate.
Year-to-date collections for eleven months were $347.1 million more than the budgeted estimate. The general fund was overcollected by $328.3 million and the four other funds were overcollected by $18.8 million.
The budgeted revenue estimates are based on the State Funding Board’s consensus recommendation adopted by the first session of the 104th General Assembly in May of last year.
The revised estimates adopted by the second session of the 104th General Assembly in May of this year assume a surplus of $169.0 million in sales tax collections, $61.6 million in franchise and excise taxes, and a general fund surplus of $ 283.9 million.