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Tennessee tax collections fall below estimate

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Sales tax collections drop slightly in November

State sales tax collections fall below budget estimate

By: TMP Reports

Posted: Friday, October 9, 2009 4:34 pm

Tennessee tax collections for September once again fell below the state's budgeted estimate. Finance and Administration Commissioner Dave Goetz reported today that overall September revenues were $920.9 million, which is 5.7% below a year ago. September is the second consecutive month this fiscal year in which state revenues have experienced overall negative growth

"We are very disappointed with the negative growth rates in September collections, especially in sales revenues," Goetz said. "Going forward we must continue to closely monitor state expenditures, in order to keep the budget in balance."

On an accrual basis, September is the second month in the 2009-2010 fiscal year.

September collections were $41.4 million less than the budgeted estimate. The general fund was under collected by $33.5 million and the four other funds were under collected by $7.9 million.

Sales tax collections were $37.8 million less than the estimate for September. The September growth rate was negative 9.4%.

Franchise and excise taxes combined were $2.6 million above the September budgeted estimate of $241.6 million. The September growth rate was 0.3%.

Gasoline and motor fuel collections for September decreased by 5.7% and they were $7.6 million below the budgeted estimate of $72.5 million.

Tobacco tax collections for the month were over collected by $4.8 million, and the growth rate was 4.4%.

Privilege tax collections were $5.9 million less than the budgeted estimate of $19.4 million.

Inheritance and Estate tax collections were $2.4 million below the budgeted estimate.

All other taxes were over collected by a net of $4.9 million.

Year-to date collections for two months were $69.6 million less than the budgeted estimate. The general fund was under collected by $64.0 million and the four other funds were under collected by $5.6 million.

The budgeted revenue estimates for 2009-2010 are based on the State Funding Board's consensus recommendation adopted by the first session of the 106th General Assembly in May of 2009, and are available on the state's Web site at http://www.tn.gov/finance/bud/budget.html.

Tagged under sales tax collections, Tennessee budget

Member Opinions:

By: PhilHarper on 10/10/09
As an accountant, I think I understand the cash and accrual bases of accounting, but I have never heard of a month being unique depending on the basis used. Did the unnamed writer mean to say that Sept. is the second mo. of the fiscal year?
Phil Harper, 724 SE Broad St., 890-0904