NASHVILLE – Tennessee revenue collections for March continued to exceed the budgeted expectations. Finance and Administration Commissioner Mark Emkes today announced that overall March revenues were $815.5 million, which is $9.5 million more than the state budgeted. It marks the eighth consecutive positive growth month for this fiscal year.
“The sales tax growth rate for March – almost eight percent - gives us the best indication of consumer optimism,” Emkes said. “That’s the largest monthly growth we’ve seen in the last 61 months, dating back to February 2006.
“It clearly represents a Tennessee economy on the up-swing, but we’ll need to continue to watch spending and work with lawmakers to end this fiscal year with a balanced budget.”
On an accrual basis, March is the eighth month in the 2010-2011 fiscal year.
The general fund was over collected by $9.6 million and the four other funds were under collected by $100,000.
Sales tax collections were $32.8 million more than the estimate for March. The March growth rate was positive 7.97%. For eight months revenues are over collected by $117.9 million. The year-to-date growth rate for eight months was positive 4.45%.
Franchise and excise taxes combined were $22.4 million below the budgeted estimate of $146.4 million. For eight months revenues are over collected by $31.8 million. The year-to-date growth rate for eight months was positive 7.82%.
Gasoline and motor fuel collections for March decreased by 2.15% and were $5.2 million below the budgeted estimate. For eight months revenues are over collected by $5.5 million.
Tobacco taxes collections were $1.2 million under the budgeted estimate of $26.0 million. For eight months revenues are under collected in the amount of $4.3 million.
Inheritance and estate taxes were over collected by $8.7 million for the month. Year to date collections for eight months are $22.4 million more than the budgeted estimate.
All other taxes were under collected by a net of $3.2 million.
Year-to-date collections for eight months were $153.7 million more than the budgeted estimate. The general fund was over collected by $133.1 million and the four other funds were over collected by $20.6 million.
The budgeted revenue estimates for 2010-2011 are based on the State Funding Board’s consensus recommendation of April 7, 2010 and adopted by the second session of the 106th. General Assembly in June. They are available on the state’s website at http//www.tn.gov/finance/bud/budget.html.
The State Funding Board met on the 8th and 14th of December 2010, and again on February 7, 2011. As a result of these meetings the board adopted mid-year revised revenue ranges for 2010-2011. The board issued a formal letter addressed to the governor and the chairman of House and Senate Finance Ways and Means Committees dated February 25, 2011, detailing the board’s actions.
The 2010-2011 revised ranges adopted by the board reflect growth rates ranging from 3.60% to 4.00% in total taxes, and 3.95% to 4.45% in general fund taxes.
Based on the board’s consensus recommendation, the official budgeted estimates for 2010-2011 were revised in March 2011.
The revised estimates are reflected on pages A-72 and A-74 in the 2011-2012 Budget Document and assume an over collection in total taxes in the amount of $198.5 million, and an over collection of $161.3 million in general fund taxes.
Year-to-date collections through March compared to the February revision are $2.3 million above the total estimate, and $6.0 million above the general fund estimate. The four other funds that share in state tax collections are $3.7 below the revised estimate.