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 May 22, 2015 07:28 GMT
THE DAY AHEAD
WASHINGTON (AP) -- The Labor Department releases its Consumer Price Index for April this morning.
CALIFORNIA OIL SPILL
GOLETA, Calif. (AP) -- Officials have closed a 160-square-mile section of ocean to fishing because of the oil spill on the Santa Barbara coast.
The announcement was made yesterday in an update on efforts to clean up the spill that spread an oil slick across 9 miles of sea.
The closure affects a 23-mile by 7-mile area offshore between Goleta and El Capitan Beach because of oil contamination.
State wildlife officials had previously closed two miles of shoreline to fishing and shellfish harvesting.
Officials say more than 8,300 gallons of the oily mess have been raked, skimmed and vacuumed -- just a fraction of the crude that escaped from a broken pipeline.
Up to 105,000 gallons may have leaked from the ruptured pipeline Tuesday, and as much as 21,000 gallons reached the sea.
FEDERAL RESERVE-LEAK PROBE
WASHINGTON (AP) -- A powerful congressman is compelling the Federal Reserve to provide documents related to a possible leak of market-moving interest-rate information to a financial newsletter.
Rep. Jeb Hensarling, the Texas Republican who heads the House Financial Services Committee, announced yesterday he had issued a subpoena to the Fed. He says the central bank has repeatedly failed to adequately respond to the panel's questions and document requests.
The committee's Republicans are investigating whether confidential information was deliberately leaked from the Fed's interest-rate policy meeting in September 2012. The Fed told the committee in March that its own investigation found no evidence that sensitive information was deliberately leaked from the policy meeting.
The Fed inspector general, an independent watchdog, and the Justice Department have been reviewing the handling of the internal probe.
WASHINGTON (AP) -- President Barack Obama says his trade agenda took "a big step forward" yesterday when it cleared a key Senate hurdle.
The legislation would let Obama negotiate trade deals that Congress can accept or reject, but not change.
Obama says his trade plan is good for American businesses and workers, and contains safeguards to ensure strong labor and environmental standards.
The president says the trade deal is "going to open up access to markets that too often are closed," even as those other countries are selling goods in the United States.
The president spoke during a meeting with his Cabinet.
DODD-FRANK BANKING RULES
WASHINGTON (AP) -- Republican senators have advanced legislation that would ease rules on smaller banks and other requirements of the landmark law reining in Wall Street and the financial industry after the 2008 crisis.
But it received no support from Democrats, making its chances of Senate passage slim.
The 12-10 party-line vote came yesterday in a sometimes rancorous session of the Senate Banking Committee. Sen. Richard Shelby of Alabama, the committee's Republican chairman, authored the legislation that would bring a sweeping rewrite of the 2010 law that arose from the financial crisis and the ensuing Great Recession. That law, known as Dodd-Frank, was enacted by a Congress controlled by Democrats despite Republican opposition.
The law tightened government oversight of banks and financial markets to avert another crisis and another taxpayer bailout of banks.
WASHINGTON (AP) -- Republicans controlling a key Senate panel have ignored veto threats and approved an overall freeze on the annual operating budgets for domestic agencies while padding war accounts with $36 billion for the Pentagon.
Senate Appropriations Committee Chairman Thad Cochran offered the proposal. It allocates slightly more money to domestic agencies and foreign aid accounts than a competing plan by House Republicans. But Democrats say it's not nearly enough, and they uniformly opposed it.
Nonetheless, Democrats voted 26-4 to advance the first of 12 annual spending bills to the full Senate, a measure funding energy programs and Army Corps of Engineers water projects. Most Democrats, however, voted against a second bill for veterans programs, saying it doesn't provide enough funding. That measure advanced by a 21-9 vote.
WASHINGTON (AP) -- The IRS is refunding a total of $10 million to thousands of tax preparers who paid to take a competency test.
A federal court struck down IRS regulations in 2013 that sought to require some tax preparers to get training and take a test. An appellate court upheld the ruling last year, saying the IRS lacked the legal authority to mandate the testing.
The IRS said about 89,000 tax preparers paid $116 apiece to take the test. The agency said Thursday it is issuing refunds to those preparers.
The Obama administration has proposed giving the IRS the authority to regulate paid tax-return preparers. As it now stands, there are no federal rules governing who can charge clients to prepare their tax returns.
SAN FRANCISCO (AP) -- As PayPal prepares to split from its corporate parent, its new chief executive is promising to expand the popular online payment system with a variety of services that consumers can use when shopping on their phones or in traditional stores.
PayPal will be spinning off from parent company eBay later this year while facing new competitive challenges. Alibaba, Amazon and even Facebook are promoting online payment systems, while Apple Pay and Google Wallet are competing to handle transactions in stores and on mobile devices.
At a press event Thursday, CEO Dan Schulman announced initiatives aimed at helping merchants sell goods on websites and through mobile apps. The company also touted a recent partnership with Burger King that lets consumers pay for their meals with a smartphone app.
Side RoadsTake a ride with Brian Smith to explore the unique people and places to be found along the Sideroads of the NewsChannel 9 viewing area.
The Good LifeCelebrating the events, adventures and activities that represent "The Good Life" in the NewsChannel 9 viewing area.
Closings and DelaysThese are the latest School and Business Closings reported to NewsChannel 9. If you see errors or need to add a school or business, call 423-757-7320.
Educator of the YearVote now for Educator Of The Year!
Deaf & Hard of HearingInformation provided to NewsChannel 9 by members of the Deaf and Hard of Hearing Community.
Sponsored EventsCheck Back Often for NewsChannel9 Sponsored Events!