December State Revenues Exceed Expectations

Thursday, January 18, 2018

Tennessee Department of Finance and Administration Commissioner Larry Martin announced Thursday that revenues for December posted higher than expected and exceeded the monthly revenues from the previous year.  State revenues for December were $1.4 billion, which is a growth of 11.34 percent and $139.9 million more than December 2016.  

“Total revenues in December were higher than expected due to revenues in the sales, income and corporate tax categories,” Commissioner Martin said. “Recorded revenues in the corporate category include two substantial one-time payments. The substantial gain in the Hall income tax is thought to be driven by the pre-payment of 2017 taxes due to recent changes in the federal tax code. December sales tax revenues reflect retail activity that occurred in November which includes Black Friday and after-Thanksgiving sales. January’s report will capture consumer spending for the Christmas holiday season. All other revenues, combined, posted marginal gains compared to recorded revenues of one year ago.” 

Total revenues in December were $171.6 million more than the budgeted estimate. The general fund recorded revenues exceeding  budgeted estimates  by $157.6 million, and the four other funds that share in state tax revenues were $14.0 million more than estimates. 

Sales tax revenues were $32.6 million more than the estimate for December.  The December growth rate was 8.73 percent. For five months revenues are $49.6 million higher than estimated, and the year-to-date growth rate is 4.61 percent. 

Franchise and excise taxes combined, including the one-time substantial payments, were $103.3 million more than the December budgeted estimate. For five months revenues are more than estimates in the amount of $107.9 million. 

Gasoline and motor fuel revenues for December increased by 23.19 percent, but were $3.4 million less than the budgeted estimate of $92.5 million. For five months revenues are $13.1 million more than estimates. 

Motor vehicle registration revenues were $4.5 million more than the December estimate, and on a year-to-date basis they are $9.8 million more than estimates. 

Tobacco tax revenues were $2.6 million more than the budgeted estimate of $19.4 million. For five months revenues are $1.3 million less than estimated. 

Privilege tax revenues were $0.6 million more than the budgeted estimate of $22.6 million. Year-to-date revenues for five months are $5.7 million more than the budgeted estimate. 

Inheritance and estate tax revenues for the month were comparative to the budgeted estimate. For five months revenues are $2.1 million less than the budgeted estimate. 

Business tax revenues were $0.3 million more than the December estimate and $1.4 million more than estimates on a year-to-date basis. 

Hall income tax revenues, including the very large estimated pre-payment of 2017 taxes, were $31.0 million more than the budgeted estimate. 

All other taxes for December recorded a net increase of $0.1 million compared to estimates.  

Year-to-date revenues for five months were $210.2 million more than the budgeted estimate. The general fund recorded $172.7 in revenues more than estimates, and the four other funds $37.5 million more than estimates. 

The budgeted revenue estimates for 2017-2018 are based on the State Funding Board’s consensus recommendation of Nov. 29, 2016 and adopted by the first session of the 110th General Assembly in May 2017. Also incorporated in the estimates are any changes in revenue enacted during the 2017 session of the General Assembly. These estimates are available on the state’s website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.



New Hamilton County Businesses

Here are the new business licenses from the County Clerk's office: A NEW DAY MASSAGE SHAUNTA D PRICE HOLMES MASSAGE THERAPY 6400 EAST BRAINERD RD STE 160 CHATTANOOGA TN 37421 A2O PHOTOGRAPHY GARY  KEEBLE PHOTOGRAPHY VARIOUS LOCATIONS CHATTANOOGA TN 37402 ADRIENNE'S BED AND BREAKFAST LLC ADRIENNE POWELL ADRIENNE'S BED AND BREAKFAST ... (click for more)

TVA Honors 2018 Engineer Of The Year At February Board Meeting

Greg Goza, a veteran transmission and power supply engineer, was honored as the Tennessee Valley Authority’s Ike Zeringue Engineer of the Year during the TVA board of directors meeting  Friday  in Chattanooga.   Mr. Goza, a 44-year TVA employee, serves as the primary interface between TVA’s Transmission Planning Department and Economic Development staff, helping ... (click for more)

Hazelwood Ordered Confined To His Home Until Sentencing In Chattanooga On June 27; Defense Renews Objection To Release Of "Incendiary" Racist Tapes

A federal magistrate in Knoxville has ordered former Pilot Travel Centers president Mark Hazelwood confined to his home pending sentencing in Chattanooga on June 27 on three felony convictions. The confinement at his Knoxville home is to be on a 24-hour basis except for medical needs. Federal Magistrate Judge Bruce Guyton also ordered Hazelwood, who made over $27 million his ... (click for more)

HCDE Transition Team Member Announces Candidacy For District 2 County Commission Seat

A longtime public education champion with a background in both public and private enterprise has announced she is seeking the seat of retiring District 2 Hamilton County Commissioner Jim Fields. Elizabeth Baker, a Signal Mountain resident and member of the transition team appointed last year by Dr. Bryan Johnson, Hamilton County School Superintendent, said she is committed ... (click for more)

TIF Proposal Fails Straight Face Test

Mayor Berke has put the City Council in an unenviable position. The Council will be asked to vote Tuesday on whether to use tax increment financing (TIF) to pay for a one-block extension of M.L. King Boulevard to the Riverwalk.  Accountability for Taxpayer Money supports the road extension concept and understands its timing. However, we strongly oppose using TIF future property ... (click for more)

Roy Exum: Want To Buy An AK-47?

On Sunday night I got an email from a reader who I enjoy that read, “How about, ‘Don’t sell assault weapons to 18-year-olds.’ The blood is on your hands (and all the other gun and violence idolaters)!” While I beg to disagree with him, this is a nation where – right now, this minute -- there are an estimated ONE TRILLION rounds of ammunition and over 300 million firearms. I can ... (click for more)