State June Tax Collections "Weak" But Exceed Budget Expectations

Thursday, July 11, 2013

Total Tennessee tax collections for June were weak, but exceeded budgeted expectations, officials said. Finance and Administration Commissioner Larry Martin reports that overall June revenues were $1.2 billion, which is $3.2 million more than the state budgeted. It marks the 11th consecutive month this year in which total collections have experienced positive growth.

Sales tax collections in June were flat, while corporate tax collections exceeded the budgeted estimate. All other tax sources, taken as a group, were above the budgeted estimates. 

“The year-to-date growth rate for all taxes remains low and points to an economy that is still anemic and recovering slowly,” Commissioner Martin said. “For the remainder of this year, we will continue to closely monitor collections and expenditures.”

The general fund was over collected by $8.9 million, and the four other funds were under collected by $5.7 million. 

Sales tax collections were $0.1 million less than the estimate for June.  The June growth rate was positive 1.18 percent. For 11 months revenues are under collected by $27.8 million. The year-to-date growth rate for eleven months was positive 1.67 percent.

Franchise and excise taxes combined were $2.3 million above the budgeted estimate of $338.9 million. The growth rate for June was negative 8.85 percent. For 11 months revenues are over collected by $278.9 million and the year-to-date growth rate was 8.76 percent.

Privilege tax collections were $0.9 million above the June estimate. For 11 months collections are $30.1 million above the budgeted estimate.

Business tax collections were $1.2 million more than the June estimate. Year-to-date collections for 11 months are $1.4 million above the budgeted estimate.

Inheritance and estate tax collections were $7.9 million above the June estimate. For 11 months collections are $35.4 million above the budgeted estimate.

Tobacco tax collections were $2.4 million below the budgeted estimate of $27.8 million. For 11 months revenues are under collected by $11.0 million.

Gasoline and motor fuel collections for June were under collected by $4.0 million. For 11 months revenues are under collected by $22.5 million.

All other taxes for June were under collected by a net of $2.6 million. 

Year-to-date collections for 11 months were $322.8 million more than the budgeted estimate. The general fund was over collected by $328.6 million and the four other funds were under collected by $5.8 million. The FY 2013 revised budget assumed an over collection of $305.9 million in General Fund Taxes. Therefore, the amount of over collection, August through June, compared to what’s in the revised FY 2013 budget is $16.9 million ($322.8 million minus $305.9 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.

The State Funding Board met on Dec. 14, 2012 to hear updated revenue projections from the state’s various economists. The board met again on Dec. 19 and adopted revised revenue ranges for 2012-2013. The revised ranges assume an over collection from the July 2012 budgeted estimate in the amount of $203.0 million to $287.3 million in total taxes and in the amount of $224.2 million to $305.9 million in general fund taxes for the current fiscal year.



FSG Bank Presents On Point A Check For $1,000

FSG Bank presented On Point with a check for $1,000 recently from funds raised during the organization’s “Change for Change” coin drive. Supporters made donations in coin canisters at FSG locations in Chattanooga during the spring. The funds will help support On Point’s mission and programs of local youth development. (click for more)

Attorney General Announces Settlement Allowing Dollar Tree To Acquire Family Dollar

Tennessee Attorney General Herbert H. Slatery III announced Thursday the merger of two large national chains of deep discount stores, Dollar Tree, headquartered in Chesapeake, Va. and Family Dollar, headquartered in Matthews, NC. As part of the agreement, Dollar Tree will be required to divest hundreds of Family Dollar stores nationwide, including stores in Memphis and Nashville. ... (click for more)

Muslim Advocacy Group Questions House Arrest For Signal Mountain Man Charged In Threats Against Muslim Village In New York

The Council on American-Islamic Relations (CAIR), the nation's largest Muslim civil rights and advocacy organization, on Saturday questioned the release of a Signal Mountain man who admitted to planning what it called "a Charleston-style terror attack" on a Muslim community in New York. CAIR also called for stepped up protection for the community targeted in the plot. Judge ... (click for more)

Plumbers Bring Complaints To WWTA; Told New Contracts Are Ready

Several plumbers on Thursday brought complaints to a committee of the Hamilton County Water and Wastewater Treatment Authority (WWTA) and got little response other than being told that new contracts are ready. Kay Keefe of Keefe Plumbing said the small number of plumbing companies still participating in the program to repair leaky lines to homes, have long been operating without ... (click for more)

Could The Marriage Decision Spark A New Independence Day?

I confess that this year I am having a hard time with the idea of celebrating the 4th of July Independence Day. It is not because I am not thankful to God for what was done on that day, what it represents, and the blessings I’ve experienced that flow from it. On the other hand, I want to think that maybe this year’s celebration will mark a period in our history in which a new movement ... (click for more)

Roy Exum: Fourth Of July, 2015

As one who is about good and fed up with being “socially correct” so less than 10 percent of us can dictate how the other 90 percent of us ought to think, I am going to pause today in order to share a wonderfully fun email that has been around for a while. It is aptly called, “You Could Have Heard A Pin Drop.” Before I do, I got a sweet note the other day from my dear friend ... (click for more)