Tennessee revenue collections recorded positive growth in July. Finance and Administration Commissioner Larry Martin on Thursday announced a net positive growth of 8.51% over July collections of one year ago. Overall, July revenues were $1.0 billion, which is $54.4 million more than the state budgeted.
“Year-end collections recorded strong growth, but were significantly impacted by two one-time corporate tax payments,” Commissioner Martin said. “Franchise and excise taxes were also strong, but we must remember that some of the collections are based on estimates and final collections may be less than recorded, resulting in the discounting of future payments.”
July marks the 12th consecutive month, on an accrual year basis, in which sales tax collections have experienced positive growth. July sales tax collections represent consumer spending that took place in the month of June.
On an accrual basis, July is the 12th month in the 2014-2015 fiscal year.
The general fund was over collected by $50.2 million, and the four other funds were over collected by $4.2 million.
Sales tax collections were $23.6 million more than the estimate for July. The July growth rate was 7.01%. For 12 months revenues are over collected by $209.0 million. The year-to-date growth rate for 12 months was positive 6.18%.
Franchise and excise taxes combined were $10.0 million above the budgeted estimate of $70.5 million. The growth rate for July was positive 17.56%. For 12 months revenues are over collected by $299.3 million and the year-to-date growth rate was positive 18.76%. Factoring out the one-time tax payments, the year-over-year recurring growth rate is approximately 10.7%.
Inheritance and estate tax collections were $0.3 million below the estimate for July. For 12 months collections are $10.4 million above the budgeted estimate.
Privilege tax collections were $5.5 million above the July budgeted estimate. For 12 months collections are $7.3 million more than the budgeted estimate, and the year-to-date growth rate was positive 16.44%.
Gross Receipts Tax collections were $1.4 million above the budgeted estimate of $15.8 million. For 12 onths collections are $1.7 million below the budgeted estimate and the year-to-date growth rate is 8.15%.
Business tax collections were $3.2 million more than the July estimate. Year-to-date collections for 12 months are $1.6 million above the budgeted estimate. For 12 months the year-to-date growth rate is 15.91%.
Tobacco tax collections were $1.0 million above the budgeted estimate of $24.5 million. For 12 months revenues are under collected by $5.0 million.
Gasoline and motor fuel tax collections for July were over collected by $5.0 million. For 12 months revenues are over collected by $21.5 million, and the growth rate is positive 2.47%.
Motor vehicle registration tax collections were $2.4 million more than what was budgeted and the July growth rate was 21.24%.
All other taxes for July were over collected by a net of $2.6 million.
Year-to-date collections for 12 months were $605.7 million more than the budgeted estimate. The general fund was over collected by $552.7 million and the four other funds were over collected by $53.0 million.
The budgeted revenue estimates for 2014-2015 are based on the State Funding Board’s consensus recommendation of Dec. 17, 2013, and adopted by the second session of the 108th General Assembly in April 2014. They are available on the state’s website at http://www.tn.gov/finance/article/fa-budget-rev.
The Funding Board met on Dec. 11, 2014, to hear updated revenue projections from the state’s various economists. The board met again on Dec. 16, and adopted revised revenue ranges for 2014-2015. The revised ranges assume an over collection from the July 2014 budgeted estimate in the amount of $32.3 million to $73.4 million in total taxes. The revised ranges for the general fund recognize a negative growth in the amount of $6.6 million up to a positive growth of $27.5 million for the current fiscal year.
Year-to-date collections for 2014-2015 are subject to final accrual adjustments.