Revenue collections up 1 percent
Posted By Sparta Live | November 26, 2008 12:00 am
The up and down movement of state revenue collections has caused officials to take a long hard look at finances and how Tennessee’s budget can be trimmed even farther than first anticipated.
State revenue collections for October 2008 were $709.1 million. This figure was only 1 percent above the collections for October 2007.
However, October 2008 was the third consecutive month where sales taxes and corporate income taxes experienced negative growth, according to Tennessee Finance and Administration Commissioner Dave Goetz.
October’s collections were $75.8 million less than the budgeted estimate. The general fund was under-collected by $72 million. The four other funds were under-collected by $3.8 million.
Sales tax collections were $40.9 million less than the estimate for October.
Franchise and excise combined collections for October was negative $17.9 million. They were $23.7 million below the budgeted estimate of $5.8 million.
Gasoline and motor fuel collections decreased by 16.21 percent. They were $10.1 million below the budgeted estimate of $73.9 million.
Tobacco tax collections for October were over-collected by $400,000. They were $2.7 million more than collections for October 2007.
Inheritance and estate taxes were under-collected by $400,000 for the month.
All other taxes were under-collected by a net $1.1 million. As of October 2008, collections for three months were $217.7 million less than the budgeted estimate. The general fund was under-collected by $200.2 million. The four other funds were under-collected by $17.5 million.
In October 2007, collections were $703.5 million, which was 6.42 percent less than October 2006 collections. Large corporate tax refund requests for overpayments were reportedly the cause for this slump in collections. Tennessee Department of Revenue Commissioner Regan Farr had said this “significant outflow of refunds may be an early sign of a softening economy and less robust revenue collections.” Farr made this statement only one year ago.
Although collections in October 2008 were approximately 6 million higher than October 2007, the future economic forecast for Tennessee had already been predicted by financial experts.
October 2007 collections were $100 million less than the budgeted estimate. Sales tax collections alone were $16.5 million less than estimated.
Archived figures for October 2006 were not available.
October 2005 sales tax collections were $6.5 million less than the estimate. The total collections in all categories for the three previous months were $1.8 million less than the budgeted estimate. Finance and Administration officials had said “the decline is not unexpected.”
In October 2004, tax collections were $677.5 million, which was $11.8 million less than the budget estimate. Sales tax collections were $19 million less than the estimate.
For detailed information about this subject log onto www.tennessee.gov/revenue/
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