NASHVILLE – Tennessee revenue collections fell short of budgeted estimates for the first month of the state’s fiscal year. Finance and Administration Commissioner Larry Martin today reported that overall August revenues were $838.9 million, which is $24.1 million above August 2012 collections, but falls below the estimate made earlier this year when the budget was approved for fiscal year 2013-14. The growth rate for August was 2.96%.
“For some time, we’ve been very concerned about the slow economic recovery at the national level, and August collections indicate that Tennessee’s recovery also continues at a very slow pace,” Martin said. “Sales tax collections for August reflect modest growth over the same time period one year ago but corporate tax collections recorded negative growth for the month, all of which kept us below the budgeted estimate for August.
“Due to federal budget uncertainties and national economic indicators, it will be necessary for us to closely monitor the state’s spending and revenue patterns each month through the fiscal year.”
On an accrual basis, August is the first month in the 2013-2014 fiscal year.
August collections were $24.3 million less than the budgeted estimate. The general fund was under collected by $20.8 million and the four other funds that share in state tax collections were under collected by $3.5 million.
Sales tax collections were $9.2 million less than the estimate for August. The August growth rate was positive 3.75%.
Franchise and excise taxes combined were $15.1 million below the budgeted estimate of $46.8 million, and the growth rate was negative 10.69%.
Gasoline and motor fuel collections increased by 0.09% from August of 2012, but were $4.6 million below the budgeted estimate of $71.7 million.
Inheritance tax collections were $0.7 million above the budgeted estimate.
Privilege tax collections were $4.2 million more than the budgeted estimate of $20.0 million
Business tax collections were $0.6 million above the August estimate.
Tobacco tax collections for the month were under collected by $0.5 million.
All other taxes were under collected by a net of $0.4 million.
The budgeted revenue estimates for 2013-2014 are based on the State Funding Board’s consensus recommendation of December 19th, 2012 and adopted by the first session of the 108th General Assembly in April 2013. They are available on the state’s website at http://www.tn.gov/finance/bud/Revenues.shtml.