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.



Tennessee Unemployment Holds Steady For 3rd Consecutive Month

Tennessee Governor Bill Haslam and Tennessee Department of Labor and Workforce Development Commissioner Burns Phillips today released the statewide unemployment rate for July 2018, and for the third consecutive month the statistic has remained at a historically low 3.5 percent.   Tennessee’s seasonally adjusted unemployment rate has not only remained unchanged since May, ... (click for more)

CARTA Approves Revised Policy On Persons Addressing The Board; To Provide Safety Training To Drivers

The CARTA board on Thursday passed a revised ordinance on persons addressing the board, including a provision that no person shall be allowed to appear before the board more than two times during any consecutive four-month period. The City Council allows speakers twice a month, while the County Commission has no limit on appearances. CARTA meets once a month. The city and ... (click for more)

City Looking For Proposals For Floating Restaurant, Riverboat Excursions

The city is seeking proposals for an exclusive agreement for a berthing agreement that would include a floating restaurant and a vessel for river excursions. Officials said the operation would be another enhancement for the downtown riverfront. The city is seeking an entrepreneur who would enter into a 10-year contract with options up to 10 years more. Officials said, "The ... (click for more)

Soddy Daisy Man Who Robbed 2 Credit Union Branches While Unarmed Gets 4-Year Federal Prison Sentence

A Soddy Daisy man who robbed two credit union branches while unarmed has been sentenced to serve four years in federal prison. Jeffrey Rutherford, 35, appeared before Judge Travis McDonough. Authorities said on Aug. 19, 2016, Rutherford entered the Comtrust Federal Credit Union on Gunbarrel Road while dressed all in black and with his face covered. He approached two tellers ... (click for more)

Harold Austin Will Be Greatly Missed

My dear friend, longtime public servant, Mr. Harold Austin, will be greatly missed. He was with the state of Tennessee and Hamilton County for many years. Doyle Ray Marler (click for more)

Roy Exum: The Saturday Funnies

I have to admit I am still laughing over the fact over 350 newspapers ganged up against President Trump’s stance on Thursday that the media is biased towards his administration. In a concerted effort these newspaper editors proved Trump to be exactly right. How in the name of common sense could any man, event, or natural phenomena cause every newspaper to unite is such a laughable ... (click for more)