October State Revenues Fall Below Budget Estimate

Friday, November 8, 2013

Tennessee revenue collections for October fell below the previous year, and below the budgeted estimate.  Finance and Administration Commissioner Larry Martin reported Friday that collections for October were $827.1 million, which is 1.16 percent below October 2012.

“We are very disappointed with the negative growth rates reported in corporate tax collections for October and the preceding two months,” Commissioner Martin said.  “However, the sales tax is our best economic indicator, and it reflects modest growth for the month and first quarter of 2013-2014.

“The national and state leading economic indicators continue to indicate a very slow recovery is in progress, and it calls on us to continue to be diligent in monitoring our spending and revenue patterns for the remainder of this year. We are committed to keeping Tennessee’s budget balanced.” 

October collections were $17.8 million less than the budgeted estimate.  The general fund was under collected by $13.7 million and the four other funds were under collected by $4.1 million. 

Sales tax collections were $8.3 million less than the estimate for October.  The October growth rate was 2.91 percent. The year-to-date growth rate was positive 3.38 percent.

Franchise and excise combined collections for October were $43.2 million, and $6.7 million below the budgeted estimate of $49.9 million.  

Gasoline and motor fuel collections decreased by 10.83 percent and they were $4.6 million below the budgeted estimate of $72.5 million.  

Tobacco tax collections for the month were under collected by $190,000.

Privilege tax collections were $341,000 below than the budgeted estimate of $24.8 million. 

Inheritance and Estate taxes were over collected by $4.6 million for the month.

Business tax collections were $1.8 million below the October estimate. 

All other taxes were under collected by a net of $0.5 million.

Year-to date collections for three months were $101.2 million less than the budgeted estimate. The general fund was under collected by $96.6 million and the four other funds were under collected by $4.6 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.

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