NASHVILLE – State tax collections exceeded budgeted estimates in December for the fourth consecutive month of this fiscal year.
Finance and Administration Commissioner Mike Morrow today announced that state revenue collections for December were $828.6 million, which is $33.6 million more than the state budgeted. December sales tax collections reflect retail sales activity that occurred in November.
“The positive growth occurring in sales tax and corporate tax collections is particularly encouraging, and gives us reason to believe Tennessee’s economy is on track to recover from the worst recession on record,” Morrow said. “It is especially pleasing to this administration knowing we are leaving a budget in balance, and a year-to-date revenue surplus available for the next governor and general assembly.”
On an accrual basis, December is the fifth month in the 2010-2011 fiscal year.
The general fund was over collected by $34.1 million and the four other funds were under collected by $563,000.
Sales tax collections were $6.3 million more than the estimate for December. The December growth rate was 2.53%. For five months revenues are over collected by $56.5 million, and the year-to-date growth rate is 3.75%.
Franchise and excise taxes combined were $30.5 million above the budgeted estimate of $121.0 million. For five months revenues are over collected by $37.7 million.
Gasoline and motor fuel collections for December increased by 0.97% and they were $2.0 million below the budgeted estimate of $65.0 million. For five months revenues are over collected by $10.9 million.
Tobacco tax collections were $3.2 million above the budgeted estimate of $23.5 million, and for five months they are $1.5 million above the budgeted estimate.
Inheritance and estate taxes were over collected by $1.6 million for the month. For five months collections are $11.1 million above the budgeted estimate.
All other taxes were under collected by a net of $6.0 million.
Year-to-date collections for five months were $98.9 million more than the budgeted estimate. The general fund was over collected by $78.4 million and the four other funds were over collected by $20.5 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.