Tennessee January Revenues Fell Below Budget

Wednesday, February 12, 2014

Tennessee’s total tax collections fell below budgeted expectations in January.  Finance and Administration Commissioner Larry Martin Wednesday announced that overall January revenues were $1.1 billion, which is $51.6 million less than the state budgeted. January represents the fifth month of negative growth in corporate tax collections this year.  

“January sales tax collections reflect consumer spending that occurred during the December holiday buying season and we recorded the largest growth rate we’ve experienced in the past 13 months,” Commissioner Martin said. “Retailers were more aggressive in holiday marketing strategies.

“April is typically the biggest month for corporate tax filings, which have been volatile here and across the nation for some time.  In anticipation of a revenue shortfall, we’re closely monitoring state spending and revenues in order to keep the budget balanced.” 

The general fund was under collected by $43.8 million and the four other funds were under collected by $7.8 million.

Sales tax collections were $6.3 million more than the estimate for January.  The January growth rate was positive 4.94 percent. For six months revenues are under collected by $18.0 million. The year-to-date growth rate for six months was positive 3.65 percent.

Franchise and excise taxes combined were $48.9 million below the budgeted estimate of $188.6 million. For six months revenues are under collected by $207.3 million. 

Gasoline and motor fuel collections for January decreased by 8.57 percent and were $4.9 million below the budgeted estimate of $71.5 million.  For six months revenues are under collected by $0.6 million. 

Tobacco tax collections were $0.9 million below the budgeted estimate of $18.5 million, and for six months they are $6.3 million under the budgeted estimate.

Inheritance and estate taxes were over collected by $0.1 million for the month. Year-to-date collections for six months are $15.1 million more than the budgeted estimate. 

Privilege tax collections were $3.1 million less than the January estimate, and on a year-to-date basis, August through January, collections are $4.4 million below the estimate.

All other taxes were under collected by a net of $0.2 million. 

Year-to-date collections for six months were $222.7 million less than the budgeted estimate. The general fund was under collected by $219.6 million and the four other funds were under collected by $3.1 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.

The Funding Board met on Dec. 10, 2013 to hear updated revenue projections from the state’s various economists. The board met again on Dec. 17 and adopted revised revenue ranges for 2013-2014. The revised ranges assume an under collection from the July 2013 budgeted estimate in the amount of $111.2 million to $134.5 million in total taxes and in the amount of $126.1 million to $145.6 million in general fund taxes for the current fiscal year.                                                



TVA Inspector General Resigns To Be U.S. Attorney For Southern District Of Alabama

The TVA Inspector General, Richard W. Moore, was confirmed by the United States Senate on Sept. 14, as the new U.S. Attorney for the Southern District of Alabama after having been nominated by President Donald J. Trump in June of this year. Mr. Moore submitted his resignation letter as Inspector General to President Trump effective the date of his appointment as the ... (click for more)

Chattanooga Chamber Calendar For Sept. 25-29

Here is the calendar for the Chattanooga Chamber of Commerce for Sept. 25-29: Tuesday, Sept. 26, Government Contracting: Managing the Maze to Get the Contract 9-11:30 a.m. BrightBridge Women’s Business Center: 535 Chestnut St., Ste. 161 Are you ready for government contracting? How to sell your products and services to federal, state and/or local governments. How to register ... (click for more)

School Board Approves "Partnership" With State As "Lesser Of 2 Evils"

The County School Board on Thursday night voted 7-2 to join in talks with the State Department of Education leading to a Partnership Zone for five low-performing schools. Joe Smith and David Testerman voted against the plan. Other board members said the only alternative was for the state to take over several low-performing schools under the Achievement School District in which ... (click for more)

Jury Hears About Incident Behind Food Lion That Authorities Say Led To Triple Murders In Lookout Valley; Neighbor Saw Trio With Guns

A Criminal Court jury on Thursday was told about an incident behind the Food Lion on Brown's Ferry Road that authorities say was the motive for an April 9, 2014, massacre at a Lookout Valley trailer park. Brandon Jackson said the incident five days earlier involved Derek Morse, who is standing trial on three counts of first-degree murder and one count of attempted first-degree ... (click for more)

September Is Prostate Cancer Awareness Month

The calendar fills up quickly in September as families return to a packed routine after quieter summer days. Unfortunately, your health might take a backseat to your busy schedule. So make a note on your calendar that September is Prostate Cancer Awareness Month, and remind yourself—or the men in your life—about the importance of a healthy prostate.   Prostate cancer is ... (click for more)

Roy Exum: I Am Very Privileged

A California professor who teaches sociology at San Diego State told her students she would give each extra credit if they would participate in a “White Privilege Checklist” the other day. Understand, there is no pass or fail but, the more of the 20 statements you agree with, reveals you are “more guilty” of being white and therefore more “privileged” than those who are not. ... (click for more)