News release from Department of Finance and Administration
NASHVILLE, Tenn. – Newest figures show that total tax revenues in the month of June were more than budgeted expectations. Finance and Administration Commissioner Larry Martin reported today that June ended with a net positive growth of 6.16% compared to taxes in the same month last year. Overall June revenues were $1.3 billion, which is $112.8 million more than the state budgeted.
“June sales tax revenues recorded much slower growth than previous months, which was not expected,” Martin said. “However, June brought us stronger than anticipated collections from corporate business taxes and well above budgeted expectations for all other tax sources combined.”
On an accrual basis, June is the eleventh month in the 2015-2016 fiscal year.
General fund revenues exceeded the budgeted estimate in the amount of $105.3 million. The four other funds that share in state tax revenues were also in excess of budgeted expectations by $7.5 million.
Sales tax revenues were $1.2 million more than the estimate for June. The June growth rate was 1.28%. For eleven months revenues are over budget by $346.2 million. The year-to-date growth rate for eleven months was 7.18%.
Franchise and excise taxes combined were $85.3 million more than the budgeted estimate of $313.1 million. The growth rate for June was 11.85%. For eleven months revenues are $372.0 million more than the budget estimate. The year-to-date growth rate was 5.11%; however, after factoring out the one-time tax payments received last year, the effective growth rate for 11 months is approximately 13.10%.
Privilege tax revenues were $11.1 million more than the June estimate. For 11 months, revenues are $34.8 million more than the budgeted estimate.
Business tax revenues were $3.1 million less than the June estimate. Year-to-date revenues for 11 months are $11.6 million more than the budgeted estimate.
Inheritance and estate taxes were $4.9 million more than the June estimate. For 11 months revenues are $19.0 million more than the budgeted estimate.
Hall income tax revenues for June were $5.1 million more than the budgeted estimate. For 11 months, revenues are $56.0 million more than the budgeted estimate.
Tobacco tax revenues were $1.8 million more than the budgeted estimate of $20.7 million. For 11 months revenues are $16.4 million in excess of the year-to-date estimate.
Gasoline and motor fuel revenues for June exceed estimates by $3.2 million. For 11 months revenues are over estimates by $35.2 million.
All other taxes for June exceeded budgeted estimates by a net of $3.3 million.
Year-to-date revenues for 11 months were $911.2 million more than the budgeted estimate. The general fund recorded revenues in the amount of $841.1 million more than the budgeted estimates, and the four other funds $70.1 million more than the budgeted estimate.
The budgeted revenue estimates for 2015-2016 are based on the State Funding Board’s consensus recommendation of December 16, 2014 and adopted by the first session of the 109th General Assembly in April 2015. Also incorporated in the estimates are any changes in revenue enacted during the 2015 session of the General Assembly. These estimates are available on the state’s website at http://www.tn.gov/finance/article/fa-budget-rev.
On November 13, 2015, the Funding Board met to hear updated revenue projections from the state’s various economists. Meeting again on November 23, 2015, the board adopted revised recurring revenue growth ranges for the 2015-2016 fiscal year. The current fiscal year’s revised ranges recognize growth in total taxes from a low of 2.80% to a high of 3.30%, and a general fund growth from a low of 2.90% to a high of 3.40%.
On April 14, 2016, in the second session of the 109th General Assembly, the legislature passed the 2016-2017 budget, which included the Funding Board’s current year revised ranges. The governor signed the budget bill on April 21, 2016.
With passage of the appropriations act, Public chapter 758, the General Assembly recognized an additional $376.1 million in total tax revenue and a corresponding increase in general fund revenues in the amount of $355.0 million for the current fiscal year.