August Revenues

NASHVILLE – State tax collections continue to show modest improvement. Finance and Administration Commissioner Dave Goetz today reported that overall August revenues were $749.3 million, which is 3.08% above August 2009 collections. 

 

“Sales tax collections have shown positive growth for the past five consecutive months, and we believe it points to a slowly recovering economy in Tennessee,” Goetz said. “Still, we need to continue to closely monitor our spending patterns in the months ahead to keep the budget in a balanced posture for the next governor.”

On an accrual basis, August is the first month in the 2010-2011 fiscal year.

 

August collections were $5.4 million less than the budgeted estimate. The general fund was under collected by $10.7 million and the four other funds were over collected by $5.3 million.

 

Sales tax collections were $10.1 million more than the estimate for August. The August growth rate was positive 3.26%.

 

Franchise and excise taxes combined were $12.0 million below the budgeted estimate of $23.5 million. 

 

Gasoline and motor fuel collections increased by 0.34% and were $4.7 million above the budgeted estimate of $69.0 million. 

 

Tobacco tax collections for the month were over collected by $1.7 million

 

Privilege tax collections were $3.6 million less than the budgeted estimate of $17.3 million.

 

Inheritance tax collections were $500,000 above the budgeted estimate.

 

All other taxes were under collected by a net of $6.8 million.

 

The budgeted revenue estimates for 2010-2011 are based on the State Funding Board’s consensus recommendation of April 7, 2010 and adopted by the second session of the 106^th General Assembly in June. They are available on the state’s website at http://www.tn.gov/finance/bud/budget.html.