January Revenues
NASHVILLE – Tennessee tax collections continued an upward trend in January, reflecting December consumer spending, including the holiday buying season. Department of Finance and Administration Commissioner Mark Emkes today announced that overall January revenues were $997.3 million, which is $38.2 million more than the state budgeted. It’s the sixth month of positive growth this fiscal year, with sales and corporate tax collections once again contributing heavily to the growth.
“January is the tenth consecutive month in which sales taxes have recorded positive growth,” Emkes said. “Holiday sales brought positive growth across the state and the nation, and although it’s modest growth, it leads us to believe Tennessee is slowly recovering from the worst recession on record.
“Going forward, we’ll monitor state spending and work closely with the legislature in order to end the fiscal year with a balanced budget as required by the state’s constitution.”
On an accrual basis, January is the sixth month in the 2010-2011 fiscal year.
The general fund was over collected by $36.6 million and the four other funds were over collected by $1.6 million.
Sales tax collections were $20.1 million more than the estimate for January. The January growth rate was positive 4.33%. For six months revenues are over collected by $76.6 million. The year-to-date growth rate for six months was positive 3.87 %.
Franchise and excise taxes combined were $19.0 million above the budgeted estimate of $141.2 million. For six months revenues are over collected by $56.7 million.
Gasoline and motor fuel collections for January increased by 4.57 % but were $184,000 below the budgeted estimate of $70.2 million. For six months revenues are over collected by $10.8 million.
Tobacco tax collections were $3.3 million below the budgeted estimate of $22.2 million, and for six months they are $1.8 million under the budgeted estimate.
Inheritance and estate taxes were over collected by $328,000 for the month. Year to date collections for six months are $11.5 million more than the budgeted estimate.
All other taxes were over collected by a net of $2.3 million.
Year-to-date collections for six months were $137 million more than the budgeted estimate. The general fund was over collected by $114.9 million and the four other funds were over collected by $22.1 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 106th General Assembly in June. They are available on the state’s website at http://www.tn.gov/finance/bud/budget.html.