Tennessee's tax collections $22M short for November

Friday, December 6, 2013, Vol. 37, No. 49

NASHVILLE (AP) - Tennessee's general fund tax collections fell $22 million short of projections in November, the fourth month of the state's budget year, Finance Commissioner Larry Martin said Tuesday.

However, he said total revenues for the month were $799 million, which is about 4 percent above the same month last year.

"While sales taxes and franchise and excise taxes came in below budgeted levels for November, our overall November revenue growth was the strongest so far this year," Martin said. "Nonetheless, the continued softness in revenue growth raises the risks of a revenue shortfall for the year."

Corporate franchise and excise taxes came in about $16 million short of projections, while the state's sales tax collections were $2 million less.

November tax collections reflect economic activity in the previous month.

Year-to-date general fund collections have fallen $119 million short of projections.

Also Tuesd ay, the State Funding Board met to hear economists' revenue estimates for the upcoming budget year. Economists estimated growth of the state's total general fund collections should range from 2.2 percent to 3.5 percent.

The board will come up with a consensus figure based on those estimates then present it to the governor who will decide whether to use it in constructing the budget.

The board also heard from state lottery officials who said because of strong sales they anticipate around 2.5 percent growth for the upcoming year.