NASHVILLE, Tenn. – Tennessee’s total tax collections for June were above budgeted expectations. Finance and Administration Commissioner Larry Martin reported today that June ended with a net positive growth of 7.29%, compared to collections in the same month one year ago. Overall June revenues were $1.3 billion, which is $56.5 million more than the state budgeted.
“While the year-to-date growth rate for all taxes remains strong, we are cautious,” Martin said. “Franchise and excise tax collections were impacted by two significant one-time corporate tax payments. F&E taxes are also based on estimated payments made throughout the year, before taxpayers finalize how much they owe on their tax returns several months later. Because of this, later this year, there could be refunds in some cases where estimated payments exceed the amount of tax actually owed.
“The state experienced similar growth in fiscal year 2012-13, but there was a significant drop in collections in the following year when corporate taxpayers reported their actual liability.”
On an accrual basis, June is the eleventh month in the 2014-2015 fiscal year.
The general fund was over collected by $52.3 million, and the four other funds were over collected by $4.2 million.
Sales tax collections were $34.9 million more than the estimate for June. The June growth rate was positive 7.62%. For eleven months revenues are over collected by $185.4 million. The year-to-date growth rate for eleven months was positive 6.10%.
Franchise and excise taxes combined were $27.7 million above the budgeted estimate of $328.5 million. The growth rate for June was positive 8.23%.
Privilege tax collections were $8.0 million below the June estimate. For eleven months collections are $1.8 million above the budgeted estimate.
Business tax collections were $3.3 million more than the June estimate. Year-to-date collections for eleven months are $1.6 million below the budgeted estimate.
Inheritance and estate tax collections were $3.0 million below the June estimate. For eleven months collections are $10.6 million above the budgeted estimate.
Tobacco tax collections were $0.7 million below the budgeted estimate of $23.5 million. For eleven months revenues are under collected by $5.9 million.
Gasoline and motor fuel collections for June were over collected by $1.1 million. For eleven months revenues are over collected by $16.5 million.
All other taxes for June were over collected by a net of $1.2 million.
Year-to-date collections for eleven months were $551.3 million more than the budgeted estimate. The general fund was over collected by $502.4 million and the four other funds were over collected by $48.9 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.