Tennessee revenue collections exceeded budgeted estimates for the first month of the state’s fiscal year. Finance and Administration Commissioner Larry Martin Friday reported that overall August revenues were $870 million, which is $31 million above collections a year ago. The growth rate for August was 3.70 percent.
“Sales taxes collected by retailers in July grew 6.73 percent, the largest month-over-month growth we have experienced in the past 27 months,” Commissioner Martin said. “Corporate tax collections grew by 9.25 percent, but were still slightly under budgeted expectations. All other taxes, taken as a group, had negative growth of 5.33 percent but were $6.1 million above the budgeted estimate for August.
“While we are encouraged by the August numbers, we continue to be concerned about the relatively slow economic recovery in Tennessee. It is important for us to maintain our close controls on state spending and to carefully monitor revenue trends.”
On an accrual basis, August is the first month in the 2014-2015 fiscal year.
August collections were $24.4 million more than the budgeted estimate. The general fund was over collected by $22.7 million and the four other funds that share in state tax collections were over collected by $1.7 million.
Sales tax collections were $19.2 million more than the estimate for August. The August growth rate was positive 6.73 percent.
Franchise and excise taxes combined were $0.9 million below the budgeted estimate of $35.5 million, and the growth rate was positive 9.25 percent.
Gasoline and motor fuel collections increased by 4.91 percent from August of 2013, and were $0.3 million above the budgeted estimate of $70.1 million.
Inheritance tax collections were $2.5 million above the budgeted estimate.
Privilege tax collections were $1.8 million more than the budgeted estimate of $21.4 million
Business tax collections were $2.4 million above the August estimate.
Tobacco tax collections for the month were under collected by $1.1 million.
All other taxes were over collected by a net of $0.2 million.
The budgeted revenue estimates for 2014-2015 are based on the State Funding Board’s consensus recommendation of December 17th, 2013 and adopted by the second session of the 108th General Assembly in April 2014. They’re available at http://www.tn.gov/finance/bud/Revenues.shtml.