April Revenues
NASHVILLE – Tennessee revenue collections continued an upward growth trend in April, with a net positive growth of 9.67% over April collections one year ago. Finance and Administration Commissioner Mark Emkes reported today that overall April revenues were $1,386.4 million or $82.8 million more than the state budgeted.
“Sales tax collections recorded the 25th consecutive month of positive growth dating back to April of 2010,” Emkes said. “In addition, corporate Franchise and Excise tax collections continue to be very encouraging, but the Hall Income Tax recorded a negative growth over last April and fell considerably short of the budgeted estimate.
“Uncertainty surrounding the outcome of Supreme Court review of the federal healthcare reform act, resolution of the federal budget and European financial crises, along with the potential for rising inflation, the volatility of gas prices and corporate tax collections, altogether requires us to be prudent for the remainder of this year.”
On an accrual basis, April is the ninth month in the 2011-2012 fiscal year.
The general fund was over collected by $83.1 million, and the four other funds were under collected by $0.3 million.
Sales tax collections were $42.9 million more than the budgeted estimate for April. The April growth rate was positive 8.77%. For nine months revenues are over collected by $183.4 million. The year-to-date growth rate for nine months was positive 7.26%.
Franchise and excise taxes combined were $16.5 million above the budgeted estimate of $361.4 million. For nine months revenues are $215.1 million over the budgeted estimate.
Hall Income tax collections for April were $15.7 million less than the budgeted estimate. For nine months collections are $18.1 million below the budgeted estimate. The growth rate for the nine month period was negative 4.41%.
Inheritance and estate tax collections were $38.3 million above the April estimate. For nine months collections are $38.0 million above the budgeted estimate.
Privilege tax collections were $724,000 more the April budgeted estimate, and for nine months collections are $254,000 above the budgeted estimate.
Gasoline and motor fuel collections for April decreased by 4.07%, and were $2.7 million less than the budgeted estimate. For nine months revenues are negative 1.03%, and $6.4 million below the budgeted estimate of $625.9 million.
Tobacco tax collections were $349,000 under the budgeted estimate of $23.0 million. For nine months revenues are under collected in the amount of $12.3 million.
All other taxes for April were over collected by a net of $3.1 million.
Year-to-date collections for nine months were $412.9 million more than the budgeted estimate. The general fund was over collected by $400 million and the four other funds were over collected by $12.9 million. The FY 2012 revised budget assumed an over collection of $209.6 million in General Fund Taxes. Therefore, the amount over collected above and beyond what’s already in the budget is $190.4 million ($400.0 million minus $209.6 million).
The budgeted revenue estimates for 2011-2012 are based on the State Funding Board’s consensus recommendation of April 15, 2011 and adopted by the first session of the 107th General Assembly in May. They are available on the state’s website at http://www.tn.gov/finance/bud/budget.shtml.
The State Funding Board met on December 9th and 14th to hear updated revenue projections from the state’s various economists. The board met again on December 19th and adopted revised revenue ranges for 2011-2012. The revised ranges assume an over collection of $187.8 million to $220.5 million in total taxes and $177.0 million to $209.6 million in general fund taxes from the fiscal year 2011-2012 budgeted estimate. The revised estimates are reflected on pages A-74 and A-76 in the 2012-2013 Budget Document.