May Revenues
NASHVILLE, Tenn. – Tennessee revenue collections exceeded budgeted expectations in May. Finance and Administration Commissioner Larry Martin reported today that overall May revenues were $974.1 million, which is $50.5 million more than the state budgeted. May sales tax collections reflect business activity that occurred in April.
“May collections recorded significant gains in sales tax revenues as well as corporate tax payments,” Martin said. “All other taxes, in total, showed marked improvement over collections of one year ago and were more than the budgeted estimates for May,” Martin said.
On an accrual basis, May is the tenth month in the 2014-2015 fiscal year.
The general fund was over collected by $48.5 million, and the four other funds were over collected by $2.0 million.
Sales tax collections were $20.5 million more than the budgeted estimate for May. The May growth rate was 9.06%. For ten months revenues are over collected by $150.5 million. The year-to-date growth rate for ten months was 5.94%.
Franchise and excise taxes combined were $16.1 million more than the budgeted estimate of $50.3 million. For ten months, revenues are $261.5 million more than the budgeted estimate and the growth rate is 21.20%, due in large part to two significant one-time tax payments. Without these two non-recurring payments the growth over last year is approximately 11%.
Inheritance and estate tax collections were $0.8 million less than the May estimate. For ten months collections are $13.7 million more than the budgeted estimate.
Privilege tax collections were $8.5 million more than the May budgeted estimate, and for ten months collections are $9.9 million more than the budgeted estimate.
Hall income tax collections for May were $2.4 million more than the budgeted estimate. Year-to-date collections for ten months are $38.0 million more than the budgeted estimate.
Gasoline and motor fuel collections for May decreased by 0.77% and were $1.3 million more than the budgeted estimate. For ten months revenues are positive 2.30% and $15.4 million more than the budgeted estimate of $690.3 million.
Business tax collections were $3.4 million more than the May estimate, and year-to-date collections for ten months are $4.8 million less than the budgeted estimate.
Tobacco tax collections were $0.5 million less than the budgeted estimate of $21.7 million. For ten months revenues are under collected in the amount of $5.2 million.
All other taxes in total were $0.4 million less than the budgeted estimates for May.
Year-to-date collections for ten months were $494.8 million more than the budgeted estimate. The general fund was over collected by $451.6 million and the four other funds were over collected by $43.2 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.