February State Revenues Less Than Expected

Year-To-Date State Revenues Remain More Than Budgeted

Friday, March 16, 2018

Tennessee Department of Finance and Administration Commissioner Larry Martin announced Friday that Tennessee tax revenue fell short of budgeted estimates in February. Overall February revenues were $884.9 million, which is $38.2 million more than we received in February one year ago, but were $3.4 million less than the state budgeted. The overall growth rate for February was 4.51 percent. 

"The state experienced growth in sales tax revenues compared to last February and receipts exceeded the budgeted estimate," Commissioner Martin said. "However, franchise and excise revenues recorded negative growth for the month and were less than the estimate. All other revenues combined revealed healthy growth for the month, but were slightly less than our budgeted estimate.

“On a year-to-date basis, the total reported revenue growth is 3.88 percent and includes several one-time events. Removing those events, one-time franchise and excise receipts and pre-payments made for 2017 Hall income taxes, the underlying growth is 4.93 percent. Corporate tax revenues show a negative growth of 7.57 percent for the year, but after adjusting for the 2017 and 2018 one-time payments included in the receipts, the growth rate is a positive 3.72 percent. All other combined revenues, on a year-to-date basis, reflect a positive 13.21 percent, but after adjusting for the accelerated payments made in the Hall income tax the growth rate is 9.05 percent. 

“While we are satisfied with the overall growth in total revenues on a year-to-date basis, we realize that typically more than one half of our annual corporate revenues materialize in the months of April through June. We will remain cautiously optimistic in anticipation of revenues in the months ahead.” 

General fund revenues were less than the budgeted estimates in the amount of $1.2 million while the four other funds that share in state tax revenues were $2.2 million less than the estimates. 

Sales tax revenues were $13.0 million more than the estimate for February and were 5.07 percent more than February 2017. For seven months, revenues are $52.6 million higher than estimated. The year-to-date growth rate for seven months was 4.01 percent. 

Franchise and excise tax revenues combined were $14.5 million less than the budgeted estimate in February, and the growth rate compared to  February 2017 was negative 18.43 percent. For seven months, revenues are $45.0 million more than the estimate and the year-to-date growth rate is negative 7.57 percent. However, adjusting for the one-time payments received last fiscal year and the one received in this fiscal year reduces the year-to-date underlying growth rate to 3.72 percent. 

Gasoline and motor fuel revenues for February increased by 19.08 percent compared to February 2017 and were $6.4 million less than the budgeted estimate of $85.9 million.  For seven months revenues have exceeded estimates by $6.7 million. 

Motor vehicle registration revenues were $2.1 million more than the February estimate, and on a year-to-date basis they are $10.8 million more than estimated. 

Tobacco taxes were $2.3 million less than the February budgeted estimate of $20.8 million. For seven months, they are $4.8 million less than the budgeted estimate. 

Inheritance and estate taxes was $0.5 million less than the February estimate. On a year-to-date basis, revenues for seven months are $2.4 million less than the budgeted estimate.

Privilege taxes were $2.8 million more than the February estimate, and on a year-to-date basis, August through February, revenues are $9.7 million more than the estimate. 

Business taxes were $1.1 million less than the February estimate. For seven months, revenues are $0.9 million more than the budgeted estimate. 

Hall income tax revenues for the month were $1.9 million more than the budgeted estimate. Driven by the substantial pre-payment of 2017 taxes, revenues on a year-to-date basis are $63.5 million in excess of the estimate. 

All other tax receipts exceeded estimates by a net of $1.6 million.  

Year-to-date revenues for seven months were $181.7 million more than the budgeted estimate. The general fund recorded $135.0 million in excess of the budgeted estimates and the four other funds $46.7 million. 

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.


TBI Releases Annual Statewide Crime Study, Revealing Increases Across Tennessee

The Tennessee Bureau of Investigation released its 2017 ‘Crime in Tennessee’ report on Friday, revealing a slight overall increase in reported instances of crime in the most recent reporting year. The annual study compiles data reported from each law enforcement agency in the state through the Tennessee Incident Based Reporting System (TIBRS). The TBI’s sophisticated crime ... (click for more)

Reliance Partners Announces New V.P. Of Risk Services, John Seidl

Reliance Partners announced the addition of John Seidl as V.P. of Risk Services. Mr. Seidl is recognized as a leading expert in DOT commercial transportation compliance.   As a former Wisconsin State Motor Carrier Trooper and FMCSA investigator with more than 20 years of experience in risk services, Mr. Seidl is well-versed in the transportation insurance space. He ... (click for more)

Robert Gillisse Was Pilot Killed In Plane Crash At Collegedale Airport

The pilot who was killed in a plane crash on the runway of the Collegedale Airport on Friday evening has been identified as Robert Gillisse, 62, of Ooltewah . Charles Swain, who is the director of the airport, said the plane was a total loss. It was a single-occupant plane. He said the plane was taking off when it crashed. He said Mr. Gillisse frequently had flown out of ... (click for more)

East Ridge To Build Open-Air Pavilion Near City Hall

East Ridge plans to construct an open-air pavilion that will include restrooms and a concession area near City Hall and the old McBrien School.  It will be part of a Town Center for East Ridge at the Tombras Avenue property. The city is also applying for a $500,000 grant to help convert Pioneer Park into a refurbished park with a splash pad. The firm of Hefferlin and ... (click for more)

A Tribute For My Brother – Sgt. Jonathan Gardner, U.S. Army

Seven years ago today, my family and I found out that my brother, Sgt. Jonathan D. Gardner, was seriously injured by a roadside bomb, (explosively formed penetrator - EFP), while on a mission in Kuwait. The EFP went through the bottom of his seat and put a softball size hole in his upper thigh. The doctors said that if the bomb had entered the Humvee an inch to the right, he ... (click for more)

Roy Exum: The Saturday Funnies

All of us who marvel at the sound of bagpipes at a funeral realize the majesty that people like piper Scottie Maclellan can lend to any “homecoming” and for years there has been a wonderful tale out of Nova Scotia that leads this week’s parade of The  Saturday  Funnies. Mind you, I do not write these stories, as many who have followed man’s laughter down through the ... (click for more)