“Sales tax collections, which are Tennessee’s best economic indicator, posted the worst first quarter growth since 2009,” Mr. Emkes said. “However, we are pleased with the positive growth rates reported in corporate tax collections for October.
“The national leading economic indicators continue to indicate a very slow recovery is in progress. Because of budget uncertainties in Washington, along with financial unrest in Europe, we must continue to be diligent in monitoring our spending and revenue patterns for the remainder of this year to keep our budget balanced.”
On an accrual basis, October is the third month in the 2012-2013 fiscal year.
October collections were $26.7 million more than the budgeted estimate. The general fund was over collected by $21.5 million and the four other funds were over collected by $5.2 million.
Sales tax collections were $9.9 million less than the estimate for October. The October growth rate was 0.93 %. The year-to-date growth rate is 1.63%.
Franchise and excise combined collections for October were $65.1 million, which is $31.6 million above the budgeted estimate of $33.5 million.
Gasoline and motor fuel collections increased by 6.44%, which is $3.8 million above the budgeted estimate of $72.4 million.
Tobacco tax collections for the month were under collected by $1.7 million.
Privilege tax collections were $1.1 million below the budgeted estimate of $21.1 million.
Inheritance and Estate taxes were over collected by $1.8 million for the month.
All other taxes were over collected by a net of $2.2 million.
Year-to date collections for three months were $68.6 million more than the budgeted estimate. The general fund was over collected by $72.9 million and the four other funds were under collected by $4.3 million.
The budgeted revenue estimates for 2012-2013 are based on the State Funding Board’s consensus recommendation of Dec. 19, 2011, and adopted by the second session of the 107th General Assembly in April 2012. They are available on the state’s website at http://www.tn.gov/finance/bud/budget.html.