June Revenues
NASHVILLE – Total tax collections for June were above state budget estimates for the month. Finance and Administration Commissioner Mark Emkes today announced that overall June revenues were $1.07 billion, which is $31.8 million more than the state budgeted. June sales tax collections represent consumer spending that took place in the month of May.
June marks the 11th consecutive month this fiscal year in which total collections have exceeded the budgeted estimates. Sales tax collections in June recorded the 15th consecutive month of positive growth, exceeding the budgeted estimate, and corporate tax collections also performed above June expectations.
“Tennessee’s revenue collections continue to show a positive growth trend, but the latest national leading economic indicators point to a very slow economic recovery,” Emkes said. “This will require us to continue to closely monitor collections and expenditures for the remainder of this year in order to end this fiscal year with a balanced budget.”
On an accrual basis, June is the eleventh month in the 2010-2011 fiscal year.
The general fund was over collected by $31.1 million, and the four other funds were over collected by $700,000.
Sales tax collections were $28.8 million more than the estimate for June. The June growth rate was 6.32%. For eleven months revenues are over collected by $195.6 million. The year-to-date growth rate for eleven months was positive 4.60%.
Franchise and excise taxes combined were $29.6 million above the budgeted estimate of $253.2 million. The growth rate for June was 13.18%. For eleven months revenues are over collected by $47.8 million and the year-to-date growth rate was 6.99%.
Privilege tax collections were $3.7 million below the June estimate. For eleven months collections are $9.7 million below the budgeted estimate.
Business tax collections were $20.3 million less than the June estimate. Year-to-date collections for eleven months are $38.8 million below the budgeted estimate.
Inheritance and estate tax collections were $800,000 below the June estimate. For eleven months collections are $26.7 million above the budgeted estimate.
Tobacco tax collections were $1.6 million below the budgeted estimate of $29.5 million. For eleven months revenues are under collected by $7.2 million.
Gasoline and motor fuel collections for June were over collected by $800,000. For eleven months revenues are over collected by $10.7 million.
All other taxes for June were under collected by a net of $1.0 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 June compared to the February revision are $77.4 million above the total estimate, and $67.2 million above the general fund estimate. The four other funds that share in state tax collections are $10.2 million above the revised estimate.
The funding board met again on April 12, 2011 to hear updated revenue estimating presentations on the state’s near-term economic outlook for fiscal years 2010-2011 and 2011-2012, taking final action on April 15th to revise the February ranges.
The action taken by the board in April recognized an increase at the top of the range for 2010-2011 from 4.00% to 4.15% in total taxes and from 4.45% to 4.50% in general fund taxes. The result of this action increased projected revenues for total taxes by $15.1 million and general fund taxes by $15.2 million for this fiscal year. This increase was recognized in the administration’s budget amendment and adopted by the General Assembly on Saturday May 21, 2011.
Year-to –date collections through June compared to the final action taken by the board and approved by the General Assembly are $62.3 million above the total estimate, and $52.0 million above the general fund estimate.