May State Revenues $40 Million Below Projections

Wednesday, June 11, 2014

Tennessee revenue collections recorded negative growth in May, largely due to a legal change in the timing of business tax payments. Finance and Administration Commissioner Larry Martin reported  that May ended with a net negative growth of 2.96 percent over collections made in the same month last year. Overall May revenues were $878.6 million, which is $40 million less than the state budgeted. May sales tax collections reflect business activity that occurred during April.

“May collections were significantly skewed due to the business tax change, along with the payment of a large sales tax settlement,” Commissioner Martin said.

“Tennessee’s sales tax collections continue to reflect a slow recovery from the recession, and require us to closely monitor collections and expenditures for the remainder of this year to end with a balanced budget.”

The general fund was under collected by $42 million, and the four other funds were over collected by $2 million.

Sales tax collections were $10.5 million less than the budgeted estimate for May.  The May growth rate was positive 0.93 percent. For 10 months revenues are under collected by $29.1 million. The year-to-date growth rate for ten months was positive 3.36 percent.

Franchise and excise taxes combined were $2.2 million below the budgeted estimate of $48.7 million. For 10 months revenues are $224.2 million less than the budgeted estimate.

Inheritance and estate tax collections were $1.5 million above the May estimate. For 10 months collections are $20.6 million above the budgeted estimate.

Privilege tax collections were $3.7 million less than the May budgeted estimate, and for 10 months collections are $14.1 million below the budgeted estimate.

Gasoline and motor fuel collections for May increased by 8.33 percent and were $3 million more than the budgeted estimate. For 10 months revenues are positive 0.85 percent and $1.6 million above the budgeted estimate of $688.2 million.

Business tax collections were $28.5 million less than the May estimate, and year-to-date collections for ten months are $1.2 million below the budgeted estimate.

Tobacco tax collections were $0.4 million above the budgeted estimate of $21.2 million. For 10 months revenues are under collected in the amount of $6.7 million.

All other taxes in total were equal to the budgeted estimates for May.

Year-to-date collections for 10 months were $222.3 million less than the budgeted estimate. The general fund was under collected by $236.0 million and the four other funds were over collected by $13.7 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 December 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.


GKH Announces Honors For Brittany Faith

Brittany Thomas Faith, of the law firm of Grant, Konvalinka & Harrison, P.C., has been elected by her peers as secretary of the American Immigration Lawyers Association Mid-South Chapter and as a   member of the Association’s executive committee. The Mid-South chapter is a sub-chapter of the national Association that consists of lawyers in Tennessee, Arkansas, Mississippi, ... (click for more)

HHM CPA Firm Adds Lowe To Dealership Services Group

Chattanooga CPA firm Henderson Hutcherson & McCullough announces Scott Lowe has joined its Dealership Services Group, bringing over 20 years of experience. “Scott’s experience working as the chief financial officer for a large automotive group equips him with a unique skillset,” said HHM partner Travis Horton. “This experience coupled with his public accounting background ... (click for more)

County Commission Gives Up Fight On $900,000 In Discretionary Funds

County Commission members have given up the fight for the annual $900,000 in discretionary funds. Commission Chairman Chester Bankston said there was not enough money available after requests from a number of agencies and departments were cut to balance the budget without a tax increase. Commissioner Sabrena Smedley said the fact that commissioners can no longer allot the ... (click for more)

Athens, Tn., Man Killed And Several Others Injured In 2 Wrecks Near Ooltewah Exit Of I-75

One person was killed and several others injured in two wrecks early Wednesday morning on I-75 northbound at exit 11.   The victim was James Newman, 66, of Athens, Tn.   Northbound lanes were closed while emergency crews worked both accidents. Traffic was rerouted to Old Lee Highway to avoid the accident scene.   Traffic was backed up for an extended ... (click for more)

A Disturbing Trend At Exit 11 - And Response (2)

So, am I the first to notice a trend?   How many wrecks does exit 11 need before anyone asks "whats up with that?"  I have lost count of the wrecks that continue to happen, even after last year's awful loss of life (which I believe 51 percent of the blame should fall on the THP officer on duty).  The problem with this section of interstate are sight lines ... (click for more)

Roy Exum: What You Leave Behind

Randy Travis, one of the best at singing country songs that has ever been, had a song about three people who got killed when an 18-wheeler missed a stop sign. There was a farmer and a teacher, a hooker and a preacher on this bus and Randy tells us: “One's headed for vacation, one for higher education, An' two of them were searchin' for lost souls.” In that wonderful song, the ... (click for more)