NASHVILLE, Tenn. – Tennessee revenue collections for December of 2015 reflected growth more than the same period a year before. Finance and Administration Commissioner Larry Martin reported today that state revenue collections for December were $1.1 billion, representing 8.95% growth and $91.1 million more than December 2014. December sales tax collections represent consumer spending that occurred in November.
“Total revenues in December were higher than expected due to collections in the sales and corporate tax categories,” Martin said. “We believe the December sales tax growth rate, which includes ‘Black Friday’ and after-Thanksgiving sales, may have been influenced by lower gasoline prices and renewed consumer confidence. January’s report will give us a clearer picture with Christmas retail activity included.
“We are pleased with strong revenues but are concerned about the economic impact of the stock market and international issues as we begin to work with the Legislature on a responsible spending plan for the next fiscal year.”
On an accrual basis, December is the fifth month in the 2015-2016 fiscal year.
Total collections in December were $99.3 million more than the budgeted estimate. The general fund recorded collections above the budgeted estimates in the amount of $93.0 million, and the four other funds that share in state tax revenues were $6.3 million more than the estimates.
Sales tax collections were $23.9 million more than the estimate for December. The December growth rate was 6.21%. For five months revenues are $159.4 million higher than estimated, and the year-to-date growth rate is 7.14%.
Franchise and excise taxes combined were $69.7 million more than the budgeted estimate of $200.8 million. For five months revenues exceeded estimates by $157.9 million.
Gasoline and motor fuel collections for December increased by 0.64%, which is $2.8 million more than the budgeted estimate of $71.8 million. For five months revenues are $18.2 million more than estimates.
Tobacco tax collections were $1.6 million less than the budgeted estimate of $20.3 million, but for five months they have recorded $4.2 million more than estimated.
Privilege tax collections were $0.3 million more than the budgeted estimate of $18.9 million. Year-to-date collections for five months are $10.2 million more than the budgeted estimate.
Inheritance and estate taxes were above estimates by $1.0 million for the month. For five months collections are $8.5 million more than the budgeted estimate.
Business tax collections were $1.0 million less than the December estimate.
All other taxes for December recorded a net increase of $4.2 million compared to estimates.
Year-to-date collections for five months were $373.5 million more than the budgeted estimate. The general fund recorded $343.4 in collections above estimates and the four other funds $30.1 million.
The budgeted revenue estimates for 2015-2016 are based on the State Funding Board’s consensus recommendation of December 16th, 2014 and adopted by the first session of the 109th General Assembly in April 2015. Also incorporated in the estimates are any changes in revenue enacted during the 2015 session of the General Assembly. These estimates are available on the state’s website at http://www.tn.gov/finance/article/fa-budget-rev.