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Tenn. Revenue Collections Up in March
Tennessee revenue collections continued to exceed budgeted expectations in March. Finance and Administration Commissioner Mark Emkes reported today that overall March revenues were $936.1 million, which is $33.1 million more than the state budgeted. Total tax collections in March were 2.2% above the previous year.
“March collections continued to reflect strong corporate profits from last year, but also reflect very modest retail activity for the month of February, when spending occurred,” Emkes said. “We believe the slowdown in retail spending reflects the two percent increase in the federal payroll tax in January and temporary erosion in consumer confidence, most likely brought about by the federal budget sequestration process.
“While year-to-date corporate tax collections remain very encouraging, we must remember that about a fourth of them typically – but not always - occur in the month of April. Due to the volatility of our corporate tax collections, we will be extremely diligent in monitoring our spending patterns for the remainder of this year, maintaining a balanced budget and financially posturing ourselves for the future.”
On an accrual basis, March is the eighth month in the 2012-2013 fiscal year.
The general fund was over collected by $35.4 million and the four other funds were under collected by $2.3 million.
Sales tax collections were $2.8 million less than the estimate for March. The March growth rate was positive 0.11%. For eight months revenues are under collected by $33.1 million. The year-to-date growth rate for eight months was positive 1.77%.
Franchise and excise taxes combined were $42.7 million above the budgeted estimate of $168.8 million. For eight months revenues are over collected by $156.5 million. The year-to-date growth rate for eight months was positive 9.12%.
Gasoline and motor fuel collections for March increased by 0.75% and were $0.2 million above the budgeted estimate. For eight months revenues are under collected by $15.2 million.
Tobacco taxes collections were $5.9 million under the budgeted estimate of $24.7 million. For eight months revenues are under collected in the amount of $10.7 million.
Inheritance and estate taxes were over collected by $2.2 million for the month. Year to date collections for eight months are $12.8 million more than the budgeted estimate.
Privilege tax collections were $2.2 million more than the March estimate, and on a year to date basis, August through March, collections are $17.8 million above the estimate.
All other taxes were under collected by a net of $5.5 million.
Year-to-date collections for eight months were $127.1 million more than the budgeted estimate. The general fund was over collected by $141.6 million and the four other funds were under collected by $14.5 million.
The budgeted revenue estimates for 2012-2013 are based on the State Funding Board’s consensus recommendation of December 19th, 2011 and adopted by the second session of the 107th General Assembly in April 2012. They are available on the state’s website at http://www.tn.gov/finance/bud/budget.html.
More Business News
Last Update on April 16, 2014 07:33 GMT
TOKYO (AP) -- Shares rose today in Asia, led by Japan's Nikkei 225 index, as investors largely shrugged off news that China's economy slowed in the first quarter.
The Nikkei jumped 2.7 percent as Softbank Corp. shares soared more than 8 percent after Chinese e-commerce Alibaba Group Holding Co., in which it holds a 37 percent state, reported strong earnings.
The dollar gained against the yen and slipped against the euro. Benchmark U.S. crude oil rose to near $104 a barrel.
WASHINGTON (AP) -- The Commerce Department leads off today's economic reports with March housing starts. Home construction has fallen for the previous three months, but February's report had a ray of hope as applications for building permits had risen a solid 7.7 percent. We'll see this morning whether that's starting to show up.
We'll also get some updates from the Federal Reserve. In the morning, the central bank releases data on industrial production for last month. Factory output showed a strong rebound in February after winter storm led to a steep drop in January.
This afternoon, the Fed releases its Beige Book, a survey of regional of business conditions.
Another big bank leads off today's corporate earnings reports. Bank of America reports quarterly financial results before the market opens.
After today's close, we get numbers from American Express, Capital One, Google and IBM.
DETROIT (AP) -- General Motors plans to ask a federal bankruptcy judge to shield the company from legal claims for conduct that occurred before its 2009 bankruptcy.
The automaker's strategy is in a motion filed late last night a Corpus Christi, Texas, federal court case, and in other cases across the nation that involve the defective ignition switches that have led GM to recall 2.6 million small cars.
The motion asks U.S. District Judge Nelva Gonzales Ramos to delay action on the lawsuit until the bankruptcy court rules and other federal courts decide if the case should be combined with other lawsuits. But GM says it's not asking to halt action on a motion to force GM to tell customers not to drive their cars that are being recalled.
GM has said at least 13 deaths have been linked to a switch that can unexpectedly slip out of the "run" position, shutting down the engine, knocking out power-assisted steering and power brakes, and disabling the air bags.
SAN FRANCISCO (AP) -- Yahoo's listless advertising sales are showing signs of life, but the company still saw a 20 percent drop in earnings in the first quarter.
The results highlight the contrasting performances of Yahoo's investment portfolio and the company's business of running ad-supported online services. Yahoo is making most of its money from its stakes in two Asian Internet companies -- China's Alibaba Group and Yahoo Japan.
Meanwhile, Yahoo's ad revenue remains stuck in a funk, although some segments showed modest improvement in the first quarter.
Yahoo earned $312 million, or 29 cents per share, during the first three months of this year. That compared to $390 million, or 35 cents per share, at the same time last year.
Revenue dipped 1 percent to $1.13 billion.
NEW YORK (AP) -- Intel says its first-quarter earnings declined, but revenue grew as it saw improvements in its PC business and solid demand for tablet processors.
Intel reports earnings of $1.95 billion, or 38 cents per share, in the January-March quarter. That's down from 40 cents per share in the first quarter of last year but still a penny better than analysts surveyed by FactSet had predicted.
Revenue grew 1 percent to $12.8 billion.
Intel has been challenged by a shift in consumer spending away from PCs. Although Intel is the leader in making chips for PCs, it hasn't done as well selling processors for smartphones and tablets. Intel has been working to change that.
OMAHA, Neb. (AP) -- CSX's first-quarter results show harsh winter weather slowed the railroad, contributing to a 14 percent drop in first-quarter profit despite modest growth in the volume of freight it carried.
CSX estimates the snow and cold cost it 8 to 9 cents per share in lost revenue and increased expenses.
CSX reports net income of $398 million, or 40 cents per share, in the quarter ending March 31. That's down 5 cents per share from a year ago, but a penny better than analysts had expected according to FactSet.
The railroad's revenue grew 2 percent to just over $3 billion as it hauled 3 percent more freight. Increases in intermodal and merchandise shipments offset coal weakness.
CSX says it expects modest profit growth this year.
WHITEHOUSE STATION, N.J. (AP) -- Merck & Co. says the Food and Drug Administration has approved its new tablet for grass allergies, Grastek, for patients five to 65 years old.
Meant as an alternative to weekly allergy shots, the tablet dissolves under the tongue. Taken daily for a few years, it gradually reduces sensitivity to common grasses, instead of temporarily relieving symptoms including sneezing, runny nose, and itchy, watery eyes. And it's best to start taking Grastek three months before grass pollen season begins.
The drug can cause severe allergic reactions and shouldn't be used by patients with severe asthma.
Merck will market the tablet in North America. Its partner, ALK-Abello, sells it in Europe as Grazas.
Merck says Grastek will be available in U.S. pharmacies in late April.
BOSTON (AP) -- A federal judge has blocked Massachusetts from banning the powerful new painkiller Zohydro.
The judge issued a preliminary injunction Tuesday after pharmaceutical company, Zogenix, argued in a lawsuit that the ban issued by Gov. Deval Patrick is unconstitutional. The judge says Massachusetts appears to have overstepped its authority in banning a federally approved medication.
The San Diego-based drugmaker is hailing the ruling.
Patrick says he's disappointed and the state will look for other ways to combat its drug abuse problem. The state argued Zohydro would exacerbate illegal drug use because it can be easily crushed, then snorted or injected to create an immediate and potentially lethal high.
The National Alliance for Model State Drug Laws says the Massachusetts ban is believed to be the first attempt by a state to block a federally approved drug.
DETROIT (AP) -- The Detroit pension fund that covers all retirees except former police officers and firefighters says it has reached a tentative agreement with the bankrupt city.
Tina Bassett, a spokeswoman for the city's general pension fund, says retirees would see a 4.5 percent cut and their cost-of-living payments would be eliminated under a deal reached late Tuesday.
Hours earlier, a group representing retired police and firefighters announced that it had reached its own deal to preserve pension benefits but trim cost-of-living payments.
Together, the agreements would cover all of Detroit's retired public workers. They would still need the approval of the more than 20,000 retirees and the thousands of active workers who qualify for a future pension. The bankruptcy judge would also have to approve.
SMARTPHONE KILL SWITCH-WIRELESS INDUSTRY
SAN FRANCISCO (AP) -- A trade group for wireless providers says the country's biggest smartphone makers and carriers will soon put anti-theft tools on the devices to try to deter rampant theft.
CTIA-The Wireless Association says that under a "Smartphone Anti-Theft Voluntary Commitment," the providers agree to install a free preloaded or downloadable anti-theft tool on smartphones sold in the U.S. after July 2015.
The wireless industry has said putting a permanent "kill switch" on phones has serious risks, including potential vulnerability to hackers.
San Francisco District Attorney George Gascon and New York Attorney General Eric Schneiderman have demanded that the wireless industry create kill switches. They say CTIA's plan still falls short of effectively ending smartphone theft because the measures will rely on consumers to seek out and turn on the technology.
BEIJING (AP) -- China's economic growth slowed to 7.4 percent in the first quarter, the slowest since the third quarter of 2012.
The figure reported Wednesday by the government is down from the previous quarter's 7.7 percent. It comes in below the full-year official growth target of 7.5 percent announced last month.
Beijing is trying to guide China to slower, more sustainable growth based on domestic consumption rather than trade and investment following a decade of explosive expansion.
The latest growth figures add to weaker-than-expected trade and other data that have raised the possibility of politically dangerous job losses.
Weaker growth also could hurt Asian economies and others for which China is a top market for commodities and industrial components.
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