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.
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Last Update on March 02, 2015 08:27 GMT
ECONOMY- THE DAY AHEAD
WASHINGTON (AP) -- The Commerce Department will release reports today on personal income and spending for January as well as construction spending for the first month of the year. Also, the Institute for Supply Management will release its manufacturing index for February.
BERLIN (AP) -- Germany's finance minister says he trusts Greece's current government to fulfill the conditions for the bailout deal, but also made clear the country would not receive any further money if it didn't.
German Finance Minister Wolfgang Schaeuble told German newspaper Bild am Sonntag Sunday that "I trust them to implement the needed measures ... and to ultimately fulfill its obligations."
At the same time, Schaeuble warned that if Greece did not fulfill the demands laid out by the eurozone finance ministers in a four-month bailout plan, "there will be no more aid."
He also said it remains to be seen whether Greece needs more aid after the end of the current bailout plan, adding that "no matter what's going to happen, we will set very strict standards."
NEW YORK (AP) -- Hyundai is recalling about 263,000 cars in the U.S. and Canada because a sensor problem could cause drivers to lose power-assisted steering.
The company has not reported any injuries or accidents. A representative for Hyundai Motor America wasn't immediately available for comment.
The National Highway Traffic Safety Administration says a sensor in the affected cars could detect a discrepancy in the steering input and signals and disable power-assisted steering as a result. Cars would revert to manual steering and require greater effort to steer at low speeds, raising the risk of a crash.
The affected cars include model years 2008 to 2010 of Elantras and Elantra Touring vehicles made between Nov. 1, 2008 and April 30.
Owners can contact Hyundai's customer service at 1-855-671-3059.
UNDATED (AP) -- Dutch chipmaker NXP Semiconductors N.V. says it has agreed to buy its smaller rival Freescale Semiconductor Ltd. for $11.8 billion in a deal that will make it the biggest supplier of microchips to the automotive industry.
The deal pays Freescale shareholders only a small premium. Freescale's market value was $11.1 billion based on Friday's closing price.
The companies said on Sunday that NXP will assume Freescale's debt, pushing the total value of the deal to $16.7 billion.
Freescale is based in Austin, Texas. It's a former division of Motorola and makes microprocessors and microcontrollers for cars and industrial equipment.
The deal has been approved by the companies' boards. It's expected to close in the second half of the year if shareholders and regulators sign off.
BEIJING (AP) -- A new survey shows China's manufacturing activity improved in February for the first time in several months.
HSBC Corp. said Monday its purchasing managers' index rose to 50.7 from January's 49.7 on a 100-point scale on which numbers above 50 show activity increasing. It was the first improvement since October.
On Saturday, Beijing cut interest rates for a second time in three months in a sign of official worry that China's economic slowdown is deepening too abruptly.
HSBC said its survey found growth in output and total new orders accelerated but new export business declined for the first time in 10 months.
Input costs fell, raising the prospect that already low inflation could tumble into a potentially dangerous bout of deflation.
JET FUEL TAXES
ATLANTA (AP) -- Georgia lawmakers may eliminate a tax break for all airlines buying jet fuel at the world's busiest airport.
A bill filed in the House would cut the exemption at Atlanta's Hartsfield Jackson Airport. Supportive lawmakers say it would help the state get federal money for aviation improvements throughout the state.
They also argue the credit shouldn't be kept in place forever. A committee could soon approve the bill.
Representatives for Atlanta-based Delta Airlines say it's a tax increase that could hurt the airport's competitiveness.
Lawmakers created the exemption in 2005 as Delta was facing bankruptcy and have extended it several times before making it permanent in 2012. The bill's sponsor says Delta's CEO is pushing for tax increases for transportation but opposes losing the airline's benefit.
OMAHA, Neb. (AP) -- Berkshire Hathaway Inc.'s fourth quarter profit slid 17 percent because of declines in the paper value of its investments and derivative contracts.
Warren Buffett's company released its latest results Saturday along with his letter to shareholders.
Berkshire's quarterly net income declined to $4.16 billion, or $2,529 per Class A share, on $48.3 billion revenue. That's down from $4.99 billion, or $3,035 per share, on $47 billion revenue last year.
The biggest factor was investment and derivative gains of $192 million this year compared to $1.2 billion last year.
Buffett says operating earnings, which exclude investments, are often a better measure. Those were $3.96 billion, or $2,412 per share, up from $3.78 billion, or $2,297 per share.
The four analysts surveyed by FactSet expected operating earnings per of $2,655.09 on average.
OMAHA, Neb. (AP) -- Billionaire Warren Buffett says owning stocks is the key to building wealth over time, but investors must avoid the common mistakes of trading too often and paying high investment fees.
The billionaire investor says there's every reason to expect stocks to perform well long-term, even if prices are volatile.
Buffett says his Berkshire Hathaway Inc. conglomerate benefited over the past 50 years from the S&P 500's growth from 84 to 2,059.
He says no commentator or investment adviser can predict the stock market. He said "market forecasters will fill your ear but will never fill your wallet."
Buffett isn't immune from investing mistakes. He told Berkshire shareholders the company lost $444 million on its investment in British retailer Tesco largely because he was slow to sell the $2.3 billion stake.
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