NASHVILLE, Tenn. – Thanks to a one-time sales tax payment, September revenue collections were $7 million above budgeted estimates. However, once that one-time payment is deducted, revenues actually were $2.4 million under what was expected.
“We would expect that the buffeting of the economy from hurricanes and fuel prices would have some effect on revenue collections,” said Finance and Administration Commissioner Dave Goetz. “In addition, we have seen a substantial falloff in revenues from new car sales, falling from a 13% increase last month to 2% growth in September.”
On an accrual basis September is the second month in the 2005-2006 fiscal year. Department of Revenue tax collections were $945.8 million for the month which included the one-time sales tax payment of $9.4 million (general fund $9 million/cities $400,000). The one-time payment was nearly one-tenth of the $95 million total growth for the month.
The general fund had a $2.2 million overcollection and the four other funds overcollected by $4.8 million. Without the one-time sales tax payment, revenues were undercollected $2.4 million.
Sales tax collections, including the one-time payment, were $3 million more than the estimate in September and for two months were overcollected by $4.3 million.
Franchise and excise taxes combined were $8.3 million less than the estimate of $248.3 million. For two months revenues were $7.6 million undercollected.
Gasoline and motor fuel collections increased by 2.1% and were $5.5 million more than the budgeted estimate which offset the August undercollection. For two months collections were $1.3 million more than the estimate.
Year-to-date collections for two months were $10.3 million more than the budgeted estimate. The general fund was overcollected by $8.4 million and the four other funds were overcollected by $1.9 million. Excluding the one-time payment, revenues were $900,000 more than the estimate. The general fund was undercollected by $600,000 and the other funds overcollected by $1.5 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 this year.