NASHVILLE- State Finance and Administration Commissioner Larry Martin announced today that September revenues were 5.22% below the budgeted estimate.
“The sales tax is the ‘bread and butter’ of revenue collections in Tennessee, and it’s our leading economic indicator,” Martin said. “September sales tax collections continued to reflect modest growth consistent with a sluggish economy.
“With uncertainty surrounding resolution of the federal budget, and national economic indicators that continue to reflect mixed results, we are required to continue close scrutiny of revenues and expenditures for the balance of this fiscal year. We will maintain a balanced budget and conservatively manage the state’s spending.”
On an accrual basis, September is the second month in the 2013-2014 fiscal year.
September collections were $59.0 million less than the budgeted estimate. The general fund was under collected by $62.1 million and the four other funds were over collected by $3.1 million.
Sales tax collections were $1.9 million less than the estimate for September. The September growth rate was positive 3.50%.
Franchise and excise taxes combined were $65.6 million below the September budgeted estimate of $342.7 million. The September growth rate was negative 10.37%.
Gasoline and motor fuel collections for September increased by 4.82% and were $2.2 million above the budgeted estimate of $69.6 million.
Tobacco tax collections for the month were under collected by $1.7 million, and the growth rate was negative 4.97%.
Privilege tax collections were $0.3 million less than the budgeted estimate of $20.0 million.
Inheritance and estate tax collections were $5.3 million above the budgeted estimate.
All other taxes were over collected by a net of $3.0 million.
Year-to date collections for two months were $83.3 million less than the budgeted estimate. The general fund was under collected by $82.9 million and the four other funds were under collected by $0.4 million.
The budgeted revenue estimates for 2013-2014 are based on the State Funding Board’s consensus recommendation of December 19th, 2012 and adopted by the first session of the 108th General Assembly in April 2013. They are available on the state’s website at http://www.tn.gov/finance/bud/Revenues.shtml.