August Revenues
NASHVILLE – State tax collections again fell below budgeted estimates in August, with sales tax collections recording negative growth for 18 of the last 20 months. Finance and Administration Commissioner Dave Goetz reported today that overall August revenues were $726.9 million, which is 5.74% below collections for August 2008.
"The continued negative trend in tax collections requires us to continue to closely monitor revenues and adjust expenditures accordingly,” Goetz said. “August sales tax figures reflect July consumer spending, and represent the first month of collections for the new fiscal year.
"We need to make sure we make adjustments to accommodate for the next several months so we keep the state’s budget in a balanced posture.”
On an accrual basis, August is the first month in the 2009-2010 fiscal year.
August collections were $28.2 million less than the budgeted estimate. The general fund was under collected by $30.5 million and the four other funds were over collected by $2.3 million.
Sales tax collections were $24.6 million less than the estimate for August. The August growth rate was negative 8.21%.
Franchise and excise taxes combined were $279,000 above the budgeted estimate of $20.6 million.
Gasoline and motor fuel collections increased by 9.13% and were $5.2 million above the budgeted estimate of $68.2 million.
Tobacco tax collections for the month were under collected by $289,000.
Privilege tax collections were $1.4 million less than the budgeted estimate of $17.6 million.
Inheritance tax collections were $3.0 million below the budgeted estimate.
All other taxes were under collected by a net of $4.4 million.
The budgeted revenue estimates for 2009-2010 are based on the State Funding Board’s consensus recommendation adopted by the first session of the 106th General Assembly in May of 2009.