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.


New Hamilton County Businesses

Here are the new business licenses from the County Clerk's office: 309 MEDIA 100 CHEROKEE BLVD SUITE 2112 CHATTANOOGA, TN 37405 A TOTAL EDGE 8916 BRAMLETT ROAD HARRISON, TN 37341 A-1 TAXI AND TRANSPORTATION LLC 8908 DRAKE PARKWAY ROAD CHATTANOOGA, TN 37416 ADVANCED COMMERCIAL GROUP, INC VARIOUS LOCATIONS CHATTANOOGA, TN 37400 ADVENTUREITUS ... (click for more)

TVA Clears Next Hurdle For Small Modular Reactors

The potential for Small Modular Reactors in the TVA’s operating fleet reached another milestone this month. The Nuclear Regulatory Commission has accepted and docketed the utility’s early site permit application for the potential construction and operation of multiple SMR units at the Clinch River Site in Oak Ridge. This action means that the NRC staff may now begin its technical ... (click for more)

Walker Charged With Sunday Night Murder Of Girlfriend In LaFayette

A 29-year-old Walker County man has been charged with murdering his girlfriend, also 29. Sheriff Steve Wilson said David Ryan Walker was charged in the slaying of Candace Ann Hankins. He said she was killed inside a house on Wheeler Road in LaFayette and her body was found in woods behind the house. The sheriff said Walker called relatives to express remorse about the killing. ... (click for more)

Man With Gun Runs From Police At Hamilton Place Mall; Pushes Shoppers Out Of The Way

A man who was found to be armed with a handgun was chased by police early Saturday afternoon. He pushed shoppers out of the way during the pursuit, which included racing down an escalator.   Erwin J. Rogers, 22, of 6111 Nottingham Dr., is facing multiple charges.    Around 1:50 p.m., Chattanooga Police officers working at the Hamilton Place Mall ... (click for more)

Beyond Freedom Of Speech

Yes, most people know about the First Amendment to our Constitution, "The right, guaranteed by the First Amendment to the U.S. Constitution, to express beliefs and ideas without unwarranted government restriction."  I being a "deplorable" draw the line when people block traffic, try to disrupt, and even stop an activity through malice and disregard for others. Case being ... (click for more)

Roy Exum: Sleep, Kelly’s On Watch

As the most intense week begins in President-elect Donald’s Trump’s ascent to become the most powerful man in the world, it is now strikingly obvious he has surrounded himself with the greatest collection of leaders to ever fill a Presidential cabinet. Each is a proven winner, be it in business, the military, or national affairs. Last week a confirmation hearing were heard for ... (click for more)