April Revenues
NASHVILLE, Tenn. – Tennessee revenue collections in April ended with a net positive growth compared to a year ago. Finance and Administration Commissioner Larry Martin reported today that overall April revenues were $1.7 billion or $90.1 million more than the state budgeted. It represents growth of 11.45% more than April 2014.
“The significant improvement in April taxes reflects an increase primarily in franchise and excise taxes, and we also saw moderate growth in sales tax receipts which indicates increased consumer confidence,” Martin said. “Together, F&E and sales taxes are the ‘bread and butter’ of our revenues, so we monitor them closely for any fluctuations, as we are committed to maintaining the state’s strong fiscal position.”
On an accrual basis, April is the ninth month in the 2014-2015 fiscal year.
The general fund was over collected by $82.5 million, and the four other funds were over collected by $7.6 million.
Sales tax collections were $12.2 million more than the budgeted estimate for April. The April growth rate was positive 5.14%. For nine months revenues are over collected by $130.0 million. The year-to-date growth rate for nine months was positive 5.60%.
Franchise and excise taxes combined were $73.3 million above the budgeted estimate of $442.2 million. The growth rate for April was 12.27%. Year-to-date collections are $245.5 million above the budgeted estimate, which is 20.49% more than last year due to two one-time tax payments. Without these non-recurring payments, the growth over last year would be approximately 10%.
Inheritance and estate tax collections were $0.6 million less than the April estimate. For nine months collections are $14.5 million above the budgeted estimate.
Privilege tax collections were $1.2 million more than the April budgeted estimate, and for nine months collections are $1.3 million above the budgeted estimate. The year-to-date growth rate for the nine month period was positive 14.99%.
Hall income tax collections for April were $37.9 million more than the budgeted estimate. For nine months collections are $35.5 million above the budgeted estimate.
Business tax collections for the month were under collected by $34.5 million. Year-to-date collections for nine months are under collected by $8.2 million.
Gasoline and motor fuel collections for April increased by 0.17%, and were $3.6 million less than the budgeted estimate. The growth rate for nine months was positive 2.66%, and collections are $14.1 million above the budgeted estimate of $618.8 million.
Tobacco tax collections were $1.5 million more than the budgeted estimate of $22.8 million. For nine months revenues are under collected in the amount of $4.7 million.
All other taxes were over collected by a net of $2.7 million.
Year-to-date collections for nine months were $444.3 million more than the budgeted estimate. The general fund was over collected by $403.0 million and the four other funds were over collected by $41.3 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.
The Funding Board met on December 11, 2014 to hear updated revenue projections from the state’s various economists. The board met again on December 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.