NASHVILLE – Tennessee revenue collections continued an upward trend in July, ending the state’s fiscal year positively, but in the midst of a still-uncertain economy. Finance and Administration Commissioner Larry Martin today announced a net positive growth of 4.42% over July collections of one year ago. Overall July revenues were $919.8 million, which is $19.0 million more than the state budgeted.
“We continue to see positive growth in sales and corporate tax collections, and we’re certainly pleased with that, but overall growth is fairly slow,” Martin said. “While we’ve had positive growth every month for the fiscal year, we must continue to monitor results nationally and be alert to the impact national conditions may have on Tennessee’s economy.”
July sales tax collections represent consumer spending that took place in the month of June.
On an accrual basis, July is the 12th month in the 2012-2013 fiscal year.
The general fund was over collected by $19.3 million, and the four other funds were under collected by $0.3 million.
Sales tax collections were $4.6 million more than the estimate for July. The July growth rate was 3.42%. For 12 months, revenues are under collected by $23.2 million. The year-to-date growth rate for 12 months was positive 1.83%.
Franchise and excise taxes combined were $13.8 million over the budgeted estimate of $52.7 million. The growth rate for July was positive 21.54%. For 12 months revenues are over collected by $292.7 million and the year-to-date growth rate was positive 9.13%.
Inheritance and estate tax collections were $0.9 million below the July estimate. For 12 months, collections are $34.5 million above the budgeted estimate.
Privilege tax collections were $0.9 million below the July budgeted estimate. For 12 months, collections are $29.2 million more than the budgeted estimate, and the year-to date growth rate was positive 8.34%.
Business tax collections were $20,000 less than the July estimate. Year-to-date collections for 12 months are $1.4 million above the budgeted estimate.
Tobacco tax collections were $1.3 million above the budgeted estimate of $24.7 million. For 12 months, revenues are under collected by $9.7 million.
Gasoline and motor fuel tax collections for July were over collected by $2.5 million. For 12 months, revenues are under collected by $20.0 million, and the growth rate is negative 0.68%.
All other taxes for July were under collected by a net of $1.4 million.
Year-to-date collections for twelve months were $341.8 million more than the budgeted estimate. The general fund was over collected by $347.9 million and the four other funds were under collected by $6.1 million. The FY 2013 revised budget assumed an over collection of $305.9 million in General Fund Taxes. Therefore, the amount of over collection, August through July, compared to what’s in the revised FY 2013 budget is $42.0 million ($347.9 million minus $305.9 million).
The budgeted revenue estimates for 2012-2013 are based on the State Funding Board’s consensus recommendation of December 19th, 2011 and adopted by the second session of the 107th General Assembly in April 2012. They are available on the state’s website at http://www.tn.gov/finance/bud/budget.html.
The State Funding Board met on December 14, 2012 to hear updated revenue projections from the state’s various economists. The board met again on December 19th and adopted revised revenue ranges for 2012-2013. The revised ranges assume an over collection from the July 2012 budgeted estimate in the amount of $203.0 million to $287.3 million in total taxes and in the amount of $224.2 million to $305.9 million in general fund taxes for the current fiscal year.
Year-to-date collections for 2012-2013 are subject to final accrual adjustments.