|FOR IMMEDIATE RELEASE
FRIDAY, AUGUST 9, 2013
CONTACT: LOLA POTTER
NASHVILLE - Tennessee revenue collections continued an upward trend in July, ending the state´s fiscal year positively, but in the midst of a still-uncertain economy. Finance and Administration Commissioner Larry Martin today announced a net positive growth of 4.42% over July collections of one year ago. Overall July revenues were $919.8 million, which is $19.0 million more than the state budgeted.
"We continue to see positive growth in sales and corporate tax collections, and we´re certainly pleased with that, but overall growth is fairly slow," Martin said. "While we´ve had positive growth every month for the fiscal year, we must continue to monitor results nationally and be alert to the impact national conditions may have on Tennessee´s economy."
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 2012-2013 fiscal year.
The general fund was over collected by $19.3 million, and the four other funds were under collected by $0.3 million.
Sales tax collections were $4.6 million more than the estimate for July. The July growth rate was 3.42%. For 12 months, revenues are under collected by $23.2 million. The year-to-date growth rate for 12 months was positive 1.83%.
Franchise and excise taxes combined were $13.8 million over the budgeted estimate of $52.7 million. The growth rate for July was positive 21.54%. For 12 months revenues are over collected by $292.7 million and the year-to-date growth rate was positive 9.13%.
Inheritance and estate tax collections were $0.9 million below the July estimate. For 12 months, collections are $34.5 million above the budgeted estimate.
Privilege tax collections were $0.9 million below the July budgeted estimate. For 12 months, collections are $29.2 million more than the budgeted estimate, and the year-to date growth rate was positive 8.34%.
Business tax collections were $20,000 less than the July estimate. Year-to-date collections for 12 months are $1.4 million above the budgeted estimate.
Tobacco tax collections were $1.3 million above the budgeted estimate of $24.7 million. For 12 months, revenues are under collected by $9.7 million.
Gasoline and motor fuel tax collections for July were over collected by $2.5 million. For 12 months, revenues are under collected by $20.0 million, and the growth rate is negative 0.68%.
All other taxes for July were under collected by a net of $1.4 million.
Year-to-date collections for twelve months were $341.8 million more than the budgeted estimate. The general fund was over collected by $347.9 million and the four other funds were under collected by $6.1 million. The FY 2013 revised budget assumed an over collection of $305.9 million in General Fund Taxes. Therefore, the amount of over collection, August through July, compared to what´s in the revised FY 2013 budget is $42.0 million ($347.9 million minus $305.9 million).
The budgeted revenue estimates for 2012-2013 are based on the State Funding Board´s consensus recommendation of December 19th, 2011 and adopted by the second session of the 107th General Assembly in April 2012. They are available on the state´s website at www.tn.gov/finance/bud/budget.html.
The State Funding Board met on December 14, 2012 to hear updated revenue projections from the state´s various economists. The board met again on December 19th and adopted revised revenue ranges for 2012-2013. The revised ranges assume an over collection from the July 2012 budgeted estimate in the amount of $203.0 million to $287.3 million in total taxes and in the amount of $224.2 million to $305.9 million in general fund taxes for the current fiscal year.
Year-to-date collections for 2012-2013 are subject to final accrual adjustments.