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.


Chattanooga Chamber Calendar Of Events Sept. 24-28

Sept. 24, Excel at Excel: Beginner Excel Training 10 to 11:30 a.m. The Edney Innovation Center: 1100 Market St., Floor Five Attend this session to learn about setting print parameters, formatting spreadsheets, sorting information, filtering information, splitting cells, simple formulas, PivotTables (they’re easier than you think!) and other features ... (click for more)

Georgia Labor Market Sets Records In August

Georgia Labor Commissioner Mark Butler said  Thursday  that Georgia’s unemployment rate for August dipped below the national number for the first time  in 11 years . The rate, at 3.8 percent, is approaching the state’s record low of 3.4 percent, set in 2000. At 3.8 percent, it is down .1 percent from July. By comparison, the national rate is 3.9 percent. ... (click for more)

1 Killed In Crash On Highway 58 Saturday Afternoon

Highway 58 was shut down Saturday afternoon due to a head-on crash with a fatality near Linda's Produce. There were multiple emergency vehicles on the scene. Highway 58 was closed in both directions. More information will follow. (click for more)

Juvenile Shot On East 14th Street On Friday

A juvenile was shot Friday evening on East 14th Street. The Chattanooga Police Department responded at 6:45 p.m. to a person shot in the 2000 block of East 14th Street. Upon arrival, Officers located a male victim suffering from a gunshot wound to the abdomen. Hamilton County EMS responded to the scene and transported the victim to a local hospital. Members of the Violent ... (click for more)

Arming Teachers With Guns Will Be Too Dangerous - And Response (4)

Arming teachers with guns in the classroom, as Bill Lee proposes, would be the single most dangerous thing to happen to students in Tennessee history. Students and teachers in close proximity to loaded firearms daily? Across this state, in middle schools alone, there are probably hundreds of student/teacher conflicts a day. What if a student got hold of gun in a struggle with ... (click for more)

Roy Exum: On Saving A Soul

Not so long ago a top writer for the Washington Post was going through some of President Ronald Reagan’s papers and, among those his wife Nancy cherished, the Post’s Karen Tumulty happened to come across a deeply-moving letter. Four pages and written by his hand, it was a heartfelt message written by the president to his wife Nancy’s father in August of 1982. President Reagan ... (click for more)