Tennessee State Revenues Down Over $4 Million For March

Tuesday, April 15, 2014

Tennessee revenue collections reflected mixed results in March. Finance and Administration Commissioner Larry Martin Tuesday reported that overall March revenues were $955.8 million. The general fund was under collected by over $4 million for March and by $263.9 million year-to-date.   

“March collections continued to reflect weaker than anticipated revenues from the corporate sector, while sales tax collections were stronger,” Commissioner Martin said. “We believe the recent increase in retail spending is a reflection of renewed consumer confidence and indicates that the economy is slowly recovering.  This growth is important in meeting current revenue projections on which the approved budget amendment was based.

“About a fourth of our corporate income taxes often – but not always - occur in the month of April. We will work with the legislature and others to manage the state’s spending and resources regardless of the economic climate, as the state has always done.” 

The general fund was under collected by $4.1 million and the four other funds were over collected by $6.9 million.

Sales tax collections were $9.4 million more than the estimate for March.  The March growth rate was positive 5.51 percent. For eight months revenues are under collected by $23.4 million. The year-to-date growth rate for eight months was positive 3.58 percent.

Franchise and excise taxes combined were $11.7 million below the budgeted estimate of $199.9 million. For eight months revenues are under collected by $227.0 million. The year-to-date growth rate for eight months was negative 13.51 percent.

Gasoline and motor fuel collections for March increased by 11.78 percent and were $7.4 million above the budgeted estimate.  For eight months revenues are over collected by $3.1 million.

Tobacco taxes collections were $4.6 million under the budgeted estimate of $23.6 million. For eight months revenues are under collected in the amount of $6.9 million. 

Inheritance and estate taxes were over collected by $0.4 million for the month. Year-to-date collections for eight months are $17.6 million more than the budgeted estimate.

Privilege tax collections were $33,000 less than the March estimate, and on a year-to-date basis, August through March, collections are $7.0 million below the estimate. 

Business tax collections were $3.7 million above the March estimate. 

All other taxes were under collected by a net of $1.8 million. 

Year-to-date collections for seven months were $257.0 million less than the budgeted estimate. The general fund was under collected by $263.9 million and the four other funds were over collected by $6.9 million.

The budgeted revenue estimates for 2013-2014 are based on the State Funding Board’s consensus recommendation of Dec. 19, 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 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.


Secretary Of State Warns Against Corporation Scam

Secretary of State Tre Hargett is warning Tennessee corporations about a potentially misleading solicitation sent from an organization called the “Tennessee Council for Corporations.” The council, which is not affiliated in any way with the Secretary of State’s office, states in its solicitation that it will prepare annual “corporate consent records” for a corporation for a $125 ... (click for more)

Dewey Hammond Joins Zipflip

Dewey Hammond, a founding partner and former member of FourBridges, a Chattanooga-based investment banking firm, has joined Zipflip, the new web-based, peer-to-peer used car marketplace.  Mr. Hammond, vice president of Business Development, will focus on developing strategic partnerships and raising capital for the start up, which is focused on removing the frustrations ... (click for more)

Grote Hall At UTC Campus Closed Due To Sinkhole

A sinkhole has prompted UTC officials to close off access to Grote Hall. Grote Hall employees have been told they do not need to report to work on Monday. Classes that are held in Grote Hall are called off for Monday. All other classes and campus activities are on for Monday. (click for more)

Bradley County Police Investigating Shooting; Victim Dies

The Bradley County Sheriff’s Office is investigating a shooting that occurred in the area of Georgetown Road. The sheriff's office said Sunday night that the victim had died. The victim's name has not yet been released.  A BCSO officer was waved down at the intersection of 25 th Street and Peerless Road by the driver of a vehicle who told the officer a gunshot victim ... (click for more)

When Black Friday Comes

So it’s Thanksgiving morning. You stumble out of bed and head to the bathroom to pee. Push the handle and away it goes (where does it go, anyway?) Better head to the kitchen and get the coffee on. While it’s brewing maybe a hot shower – love that gas water heater, I mean, it heats the water, and lots of it. Now time to enjoy a cup o’ joe and some breakfast while catching up with ... (click for more)

Roy Exum: UVa --Time For Change

The University of Virginia is, by any measure, one of the finest universities in the world. I have long admired it, whether covering dozens of sports events, cavorting with countless friends, or benefitting repeatedly from the surgical skills of the late world-class humanitarian Frank McCue. But today there is a terrible pall over “Mr. Jefferson’s university” – no, make that a ... (click for more)