April Revenues

NASHVILLE – Tennessee revenue collections continued to decline in April, once again falling short of budgeted estimates. Finance and Administration Commissioner Dave Goetz reported today that overall April revenues were $1.216 billion, which is $189.6 million less than the state budgeted.

 

“April is the ninth consecutive month this fiscal year that we’ve seen negative growth in sales taxes and corporate income taxes compared to a year ago.” Goetz said. “In fact, we’ve seen negative growth in sales tax collections for 14 of the past 16 months – since January 2008.”

 

On an accrual basis, April is the ninth month in the 2008-2009 fiscal year.

 

The general fund was under collected by $164.3 million, and the four other funds were under collected by $25.3 million.

 

Sales tax collections were $74.5 million less than the estimate for April. The April growth rate was negative 9.94%. For nine months revenues are under collected by $466.9 million. The year-to-date growth rate for nine months was negative 6.73%.

 

Franchise and excise taxes combined were $56.6 million below the budgeted estimate of $387.8 million. For nine months revenues are under collected by $258.0 million.

 

Hall Income tax collections for April were $32.2 million less than the estimate. For nine months collections are $36.2 million less than the budgeted estimate. The growth rate for the nine month period was negative 23.27%.

 

Inheritance and estate tax collections were $3.8 million below the April estimate. For nine months collections are $10.8 million under the budgeted estimate.

 

Gasoline and motor fuel collections for April increased by 0.77%. For nine months revenues are negative 6.22%, and $37.0 million below the budgeted estimate of $641.5 million.

 

Tobacco tax collections were $11.6 million under the budgeted estimate of $30.2 million. For nine months revenues are under collected in the amount of $20.4 million.

 

Year-to-date collections for nine months were $887.6 million less than the budgeted estimate. The general fund was under collected by $807.9 million and the four other funds were under collected by $79.7 million.

 

The budgeted revenue estimates for 2008-2009 are based on the State Funding Board’s consensus recommendation adopted by the second session of the 105^th General Assembly in May of 2008.

 

The revised estimates for this fiscal year as presented in the 2009-2010 Budget Document assume an under collection in total taxes in the amount of $1.1 billion. The general fund under collection is projected to be $1.06 billion.

 

By tax source the assumed under collections are: Sales tax $544.2 million; F&E taxes $336.1 million; privilege taxes $80.6 million; hall income tax $58.0 million; highway fund road user taxes $48.6 million; and a net under collection of$40.0 million from all other tax sources.