Tennessee tax collections for the year rise to nearly $1 billion above projections

Tennessee tax collections for the year rise to nearly $1 billion above projections

July 13th, 2016 by Andy Sher in Politics State

Tax form with pen, glasses, dollars and calculator

Photo by LIgorko

NASHVILLE — Tennessee revenue collections tore through expectations yet again in June, bringing in $112.8 million more than projected. 

That brings the state's tax collections for Fiscal Year 2015-2016 to $911.2 million above projections originally made last year by the State Funding Board.

State Finance Commissioner Larry Martin said growth in last month's tax collections hit 6.16 percent over June 2015. But the commissioner sought to temper that, saying June sales tax collections "recorded much slower growth than previous months, which was not expected."

"However," Martin added, "June brought us stronger than anticipated collections from corporate business taxes and well above budgeted expectations for all other tax sources combined."

June is the eleventh month of the state's 2016 fiscal year under the accrual method of accounting used by state government.

General fund revenues, which pay for most state government expenses, exceeded budget estimates by $105.3 million. The four other funds, including the highway fund, were $7.5 million above estimates.

Sales tax revenues came in at $1.2 million or 1.28 percent more than the June estimate.  For the 11 months so far, sales tax collections are still over budget by $346.2 million. The year-to-date growth rate was 7.18 percent.

But business franchise and excise taxes poured in at $85.3 million more than the budgeted estimate of $313.1 million in June. The growth rate for June was 11.85 percent. So far this fiscal year, those collections are $372 million more than the budgeted estimate. The year-to-date growth rate was 5.11 percent.

Privilege tax revenues were $11.1 million more than the June estimate and are now $34.8 million above budgeted estimates year to date. Business tax revenues were $3.1 million less than the June estimate. But year-to-date revenues remain $11.6 million more than expected.

Inheritance and estate taxes were $4.9 million more than June estimates. Year-to-date, collections are $19.0 million more than the budgeted estimate. But the state won't be able to count on that source of money any more. State lawmakers five years ago voted to phase out the taxes completely at the end of this fiscal year.

Hall income tax revenues for June were $5.1 million more than the budgeted estimate. Year to date they are $56.0 million more than the budgeted estimate. But lawmakers this year voted to begin phasing out the tax on investment dividends and bond interest over a six-year period.

Gas and motor fuel revenues for June exceed estimates by $3.2 million. Year to date, they're now exceeding projections by $35.2 million.

With one month left to go in Tennessee's fiscal year, the general fund has recorded revenues in the amount of $841.1 million more than year-to-date budgeted estimates. The four other funds, which includes the highway fund, are $70.1 million more than budgeted estimates.  

With passage of this year's budget, state lawmakers recognized an additional $376.1 million in total tax revenue.


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