|FOR IMMEDIATE RELEASE
THURSDAY, MAY 15, 2014
CONTACT: LOLA POTTER
NASHVILLE - Tennessee revenue collections in April ended with a net positive growth over a year ago. Finance and Administration Commissioner Larry Martin reported today that overall April revenues were $1.5 billion or $74.7 million more than the state budgeted. It represents growth of 0.96% over April 2013.
“Total reported collections in April were significantly skewed by a change in the law which affected the due date for business tax payments,” Martin said. “The tax due date is now tied to the taxpayer’s fiscal year, meaning that tax payments for over 90 percent of businesses subject to the tax were due on April 15. Previously, the taxes were paid periodically throughout the year, depending on business classifications.
“We will end this year with a balanced budget, but it will require us to continue monitoring revenue and expenditure patterns.”
On an accrual basis, April is the ninth month in the 2013-2014 fiscal year.
The general fund was over collected by $69.8 million, and the four other funds were over collected by $4.9 million.
Sales tax collections were $4.8 million more than the budgeted estimate for April. The April growth rate was positive 4.04%. For nine months revenues are under collected by $18.6 million. The year-to-date growth rate for nine months was positive 3.64%.
Franchise and excise taxes combined were $4.9 million above the budgeted estimate of $454.2 million. For nine months revenues are $222.0 million below the budgeted estimate. The year-to-date growth rate August through April was negative 10.28%.
Inheritance and estate tax collections were $1.5 million above the April estimate. For nine months collections are $19.1 million above the budgeted estimate.
Privilege tax collections were $3.3 million less than the April budgeted estimate, and for nine months collections are $10.4 million below the budgeted estimate. The year-to-date growth rate for the nine month period was positive 3.28%.
Hall income tax collections for April were $37.8 million more than the budgeted estimate. For nine months collections are $35.1 million above the budgeted estimate.
Business tax collections were over collected by $35.1 million due to a change in the law which went into effect January 1, 2014. The new law changed the due date of the tax payments to coincide with the fiscal year of each business subject to the tax.
Gasoline and motor fuel collections for April decreased by 9.20%, and were $4.5 million less than the budgeted estimate. The growth rate for nine months was positive 0.03%, and collections are $1.3 million below the budgeted estimate of $617.9 million.
Tobacco tax collections were $0.2 million under the budgeted estimate of $22.5 million. For nine months revenues are under collected in the amount of $7.1 million.
All other taxes for April were under collected by a net of $1.4 million.
Year-to-date collections for nine months were $182.3 million less than the budgeted estimate. The general fund was under collected by $194.0 million and the four other funds were over collected by $11.7 million.
The budgeted revenue estimates for 2013-2014 are based on the State Funding Board’s consensus recommendation of December 19th, 2012 and adopted by the first session of the 108th General Assembly in April 2013. They are available on the state’s website at http://www.tn.gov/finance/bud/Revenues.shtml.
The Funding Board met on December 10, 2013 to hear updated revenue projections from the state’s various economists. The board met again on December 17 and adopted revised revenue ranges for 2013-2014. The revised ranges assume an under collection from the July 2013 budgeted estimate in the amount of $111.2 million to $134.5 million in total taxes and in the amount of $126.1 million to $145.6 million in general fund taxes for the current fiscal year.