April Revenues
NASHVILLE – Tennessee revenue collections continued a very modest positive growth trend in April. Finance and Administration Commissioner Mark Emkes today announced a net positive growth of 1.70% over April collections one year ago. Overall April revenues were $1.264 billion, which is $600,000 more than the state budgeted.
“Sales tax collections recorded the 13th consecutive month of positive growth dating back to April of 2010,” Emkes said. “Corporate Franchise and Excise tax collections have been disappointing for the past two months but it’s believed they are reflecting prior year losses that have been carried forward to this tax year.
“In light of depressed corporate tax collections, and with one very large collection month left in this year, we’ll closely monitor collections and expenditures and work with the legislature to ensure we end the year in balance.”
On an accrual basis, April is the ninth month in the 2010-2011 fiscal year.
The general fund was under collected by $6.9 million, and the four other funds were over collected by $7.5 million.
Sales tax collections were $22.8 million more than the budgeted estimate for April. The April growth rate was positive 3.52%. For nine months revenues are over collected by $140.6 million. The year-to-date growth rate for nine months was positive 4.34%.
Franchise and excise taxes combined were $31.5 million below the budgeted estimate of $372.6 million. For nine months revenues are $348,000 over the budgeted estimate.
Hall Income tax collections for April were $537,000 less than the budgeted estimate. For nine months collections are $5.3 million more than the budgeted estimate. The growth rate for the nine month period was positive 10.83%.
Inheritance and estate tax collections were $5.3 million above the April estimate. For nine months collections are $27.7 million over the budgeted estimate.
Gasoline and motor fuel collections for April increased by 3.04%, and were $2.4 million more than the budgeted estimate. For nine months revenues are positive 3.59%, and $7.8 million above the budgeted estimate of $617.3 million.
Tobacco tax collections were $391,000 over the budgeted estimate of $23.6 million. For nine months revenues are under collected in the amount of $3.9 million.
All other taxes for April were over collected by a net of $546,000.
Year-to-date collections for nine months were $154.2 million more than the budgeted estimate. The general fund was over collected by $126.2 million and the four other funds were over collected by $28.0 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.
The State Funding Board met on the 8th and 14th of December 2010, and again on February 7, 2011. As a result of these meetings the board adopted mid-year revised revenue ranges for 2010-2011. The board issued a formal letter addressed to the Governor and Chairman of House and Senate Finance Ways and Means Committees dated February 25, 2011 detailing the board’s actions.
The 2010-2011 revised ranges adopted by the board reflect growth rates ranging from 3.60% to 4.00% in total taxes, and 3.95% to 4.45% in general fund taxes.
Based on the board’s consensus recommendation, the official budgeted estimates for 2010-2011 were revised in March 2011.
The revised estimates are reflected on pages A-72 and A-74 in the 2011-2012 Budget Document and assume an over collection in total taxes in the amount of $198.5 million, and an over collection of $161.3 million in general fund taxes.
Year-to-date collections through April compared to the February revision are $10.0 million above the total estimate, and $3.6 million above the general fund estimate. The four other funds that share in state tax collections are $6.4 above the revised estimate.