NASHVILLE - Tennessee lawmakers working to settle on a spending plan finally have some good news: The state's monthly sales tax collections have grown for the first time in nearly two years.
Legislative leadership discussed the upcoming budget with Democratic Gov. Phil Bredesen at their weekly breakfast in Nashville on Wednesday morning. The talks came as lawmakers learned that general fund collections came in at $51 million above expectations in April, which reflect economic activity in the previous month.
Sales taxes, which account for two out of every three tax dollars collected by the state, grew by 5.6 percent, compared with the first nine months of the budget year, when they decreased by 4.1 percent. The last time Tennessee saw a growth in sales taxes was in May 2008.
Corporate franchise and excise taxes came in almost $48 million above expectations in the month.
Still, the state's general fund was still about $154 million below original projections for the budget year that ends June 30.