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.                                                


Hullco Heritage Foundation Presents Checks To First Tee Of Chattanooga And Hunter Worley Foundation

The Hullco Heritage Foundation continues to support children and families in the Chattanooga area by raising funds for The First Tee of Chattanooga and Hunter Worley Foundation. During the 2014 Hullco Heritage Foundation Event, $75,000 was raised. Since the inception of The Hullco Heritage Foundation in 2012 $160,000 has been raised. The funding is divided equally between the two ... (click for more)

Chicken Salad Chick Supports Chattanooga Area Food Bank With Fundraiser

Chicken Salad Chick of Chattanooga recently donated over $6,000 to the Chattanooga Area Food Bank following their Coupon Book Campaign during Hunger Action Month in September. Area Manager Jennifer Lawhorn and her team were committed to encouraging the sale of these Coupon Books in order to help fight local hunger. “It’s all about people helping people, giving back to the community ... (click for more)

Police Looking For Scruggs In Stabbing Of Man, Woman

Police are looking for 30-year-old Sean Michael Scruggs in the stabbing of a man and a woman. The victims were listed as Charde N. Joseph, 27, and Kameron Sales, 18. They suffered non-life threatening injuries. Warrants are on file for Scruggs for especially aggravated burglary, attempted murder, aggravated assault (domestic) and vandalism. The incident took place on ... (click for more)

Bobby Dodd Lawsuit Against City Moved To Federal Court

A lawsuit brought by former Chattanooga Police Chief Bobby Dodd against the city of Chattanooga and the Chattanooga Fire and Police Pension Fund over his pension has been moved to Federal Court. The lawsuit was earlier filed in Chancery Court by attorneys Jerry Tidwell and Adam Izell. The suit says former Chief Dodd opted for a plan that would have half of his pension go to ... (click for more)

Please Don't Close The Piccadilly Cafeteria At Hamilton Place - And Response

Oh, no. The Piccadilly Cafeteria at Hamilton Place is closing.  Its last day is Christmas Eve.  I will miss the great food they have there but most of all I will miss their servers, cashiers and waitresses.  They are all so friendly and accommodating.  They make it like it’s a home-style restaurant. I sure wish there was some way that Hamilton Place and ... (click for more)

Roy Exum: 10 Tasks For This Week

In 1993 a 95-year-old man named William Snell created a list called “Life’s Little Instructions.” His list has swirled around in the Internet ever since and it is, indeed, a delightful checklist to keep us focused in the right direction. Curiously, when I read over it this past weekend, it dawned on me that if each of us would try to accomplish just 10 items on Mr. Snell’s list ... (click for more)