NASHVILLE – Tennessee revenue collections continued an upward growth trend in May with a net positive growth of 3.40% over collections made in the same month last year. Finance and Administration Commissioner Mark Emkes reported today that overall May revenues were $871.1 million, which is $15.6 million more than the state budgeted.
“May marks the tenth consecutive month this year in which total collections have exceeded the budgeted estimates,” Emkes said. “While we’ve seen growth in sales tax collections for the past 26 consecutive months, the growth has slowed - and corporate tax collections for May were below the budgeted estimate.
“Because the national and global economies remain concerns, we will continue to closely monitor collections and expenditures for the remainder of this year in order to financially posture ourselves for the future.”
On an accrual basis, May is the tenth month in the 2011-2012 fiscal year.
The general fund was over collected by $12.4 million, and the four other funds were over collected by $3.2 million.
Sales tax collections were $17.2 million more than the budgeted estimate for May. The May growth rate was positive 4.40%. For ten months revenues are over collected by $200.6 million. The year-to-date growth rate for ten months was positive 6.97%.
Franchise and excise taxes combined were $4.2 million below the budgeted estimate of $44.8 million. For ten months revenues are $210.9 million over the budgeted estimate.
Inheritance and estate tax collections were $2.9 million above the May estimate. For ten months collections are $40.9 million above the budgeted estimate.
Privilege tax collections were $2.2 million more the May budgeted estimate, and for ten months collections are $2.4 million above the budgeted estimate.
Gasoline and motor fuel collections for May increased by 2.46%, and were $2.2 million more than the budgeted estimate. For ten months revenues are negative 0.57%, and $4.3 million below the budgeted estimate of $696.7 million.
Business tax collections were $9.1 million less than the May estimate and year to date for ten months collections are $12.3 million below the budgeted estimate.
Tobacco tax collections were $2.3 million above the budgeted estimate of $23.6 million. For ten months revenues are under collected in the amount of $10.0 million.
All other taxes for May were over collected by a net of $2.1 million.
Year-to-date collections for ten months were $428.5 million more than the budgeted estimate. The general fund was over collected by $412.4 million and the four other funds were over collected by $16.1 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 $202.8 million ($412.4 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.