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.                                                


HHM Expands To Memphis, Merges With Brundige Payne & Company

Chattanooga based certified public accounting firm,    Henderson Hutcherson & McCullough, PLLC begins implementing its growth plan by announcing the merger with Brundige Payne & Company, PC effective Aug.   1. The combined company will operate as HHM Memphis and will move ... (click for more)

Bellhops Moving To Give Away 3 $1,000 Scholarships

Bellhops, a moving company servicing over 20 U.S. cities, has been pioneering the empowerment of a young workforce for over five years now, specifically growing and supporting their college based workforce of movers they call “bellhops”, said officials.  Today the Chattanooga based moving company amplified their dedication of youth empowerment with the announcement of their ... (click for more)

Cleveland City Council Votes 4-2 To Pass A 46-Cent Property Tax Increase

The Cleveland City Council, with scant public notice, voted 4-2 on first reading on Monday afternoon to approve one of the largest property tax increases in the city's history. Richard Banks, Bill Estes, Tom Cassada and Vice Mayor Avery Johnson voted for a 46-cent property tax boost. Opposed were Charlie McKenzie and David May. Dale Hughes and Mayor Tom Rowland were absent ... (click for more)

Pair Arrested In Connection With Lookout Mountain Vehicle Thefts, Break-Ins

Police on Lookout Mountain said two arrests have been made tied to the theft of  two vehicles stolen from a home in Lookout Mountain, Ga., last week.   In connection to the vehicle thefts, seven other vehicles were entered and several items were stolen. Lookout Mountain, Ga., Chief Todd Gann said, "Early  Wednesday  morning, a Georgia resident noticed ... (click for more)

Do Something To Protect Our Children

It is unconscionable in this day and age that these children had to exist in such deplorable conditions and that an innocent baby suffered and died alone in a locked car.  Yes, there is blame and accountability considering this family had child neglect charges filed a few years ago (that were apparently dropped and expunged) and a large part of the responsibility should ... (click for more)

Roy Exum: Not Many Know This

The best story of the summer – by far – came out of Panama City over the Fourth of July weekend when over 80 total strangers on a Panama City beach responded to screams. Two boys, ages 14 and 11, were caught in a rip tide and all of these “angels” quickly formed a human chain -- over 80 people with their arms locked -- to stretch out in the water, reach those kids and tug them out ... (click for more)