NASHVILLE, Tenn. – Tennessee revenue collections for November continued to reflect economic growth. Finance and Administration Commissioner Larry Martin reported today that November collections were $902.6 million, which is 9.58% more than November 2014.
“We believe the current fiscal year will show moderate growth, somewhat better than most recent post-recession years,” Martin said. “Sales tax revenues are improved from last year, but economists aren’t certain we will sustain this growth pattern. We won’t know how after-Thanksgiving retail sales performed until this time next month.
“Franchise and excise taxes, which have been volatile in recent years, have been more than budgeted levels for the last three months.”
On an accrual basis, November is the fourth month in the 2015-2016 fiscal year.
November collections were $50.9 million more than the budgeted estimate. The general fund was over collected by $42.6 million, and the four other funds that share in state tax collections were over collected by $8.3 million.
Sales tax collections were $34.6 million more than the estimate for November. The growth rate was positive 7.04%. Year-to-date the growth rate for four months is positive 7.37%.
Franchise and excise combined collections for November were $41.1 million, which is $4.9 million more than the budgeted estimate of $36.2 million. Year-to-date the growth rate for four months is 24.00%.
Gasoline and motor fuel collections were $4.3 million more than the budgeted estimate of $72.0 million. For four months year-to-date collections are $15.4 million more than the budgeted estimate.
Tobacco tax collections for the month were over collected by $2.9 million.
Privilege tax collections were $0.2 million less than the budgeted estimate of $21.3 million.
Inheritance and Estate taxes were over collected by $2.4 million for the month. Year-to-date collections for four months are $7.5 million more than the budgeted estimate.
Business tax collections were $1.9 million less than the November estimate.
All other taxes were over collected by a net of $3.9 million.
Year-to-date collections for four months were $274.2 million more than the budgeted estimate. The general fund was over collected by $250.5 million and the four other funds were over collected by $23.7 million.
The budgeted revenue estimates for 2015-2016 are based on the State Funding Board’s consensus recommendation of December 16th, 2014 and adopted by the first session of the 109th General Assembly in April 2015. Also incorporated in the estimates are any changes in revenue enacted during the 2015 session of the General Assembly. These estimates are available on the state’s website at http://www.tn.gov/finance/news/category/revenues.