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 January 30, 2015 08:34 GMT
ECONOMY-THE DAY AHEAD
WASHINGTON (AP) -- Investors will have their eye on the government's latest estimate of U.S. economic growth when the Commerce Department releases its report on fourth quarter gross domestic product today.
Also, the University of Michigan will issue its monthly index of consumer sentiment for January and the Labor Department will release the employment cost index for the fourth quarter, a measure of wage and benefit growth..
It's also the busiest week of the current corporate earnings season.
The global biopharmaceutical company AbbVie will report quarterly financial results before the market opens, along with Altria Group and MasterCard.
NEW YORK (AP) -- Investors apparently have a craving for a better burger.
Hamburger chain Shake Shack Inc. has priced its initial public stock offering at $21 per share, above its proposed range of $17 to $19 per share.
It sold 5 million shares, raising $105 million. The banks managing the deal may buy 750,000 more shares.
Shake Shack cooks burgers to order and promotes its use of natural ingredients, emblematic of what's known as the "better burger" trend.
Its origins date to 2001, when Union Square Hospitality Group, a company owned by restaurateur Danny Meyer, opened a hot dog cart in Manhattan's Madison Square Park. Shake Shack now has 63 locations in nine countries.
The stock is expected to begin trading Friday on the New York Stock Exchange under the "SHAK" ticker symbol.
TOKYO (AP) -- Japan's industrial output edged higher in December, suggesting the world's third-largest economy may be turning the corner on a recession brought on by a hefty sales tax hike.
Data released Friday showed manufacturing output increased 0.3 percent in December from the same month a year earlier. However, inflation moderated to 2.5 percent from a year earlier, compared with 2.7 percent in November.
The core consumer price index, excluding food, fell 0.2 percent from the month before.
Falling energy costs thanks to the plunge in oil prices had a limited effect, since the CPI excluding both food and energy was unchanged from the previous month.
Japan's jobless rate dipped to 3.4 percent from 3.5 percent the month before. But stagnant wages meant household spending dropped 3.4 percent from a year earlier.
MINNEAPOLIS (AP) -- Jury deliberations will resume Friday in a case alleging a 1996 Toyota Camry had a design defect that caused a fatal crash.
Jurors left the federal court in Minneapolis without a verdict Thursday and will return Friday to keep deliberating. At one point in their discussions, jurors asked for a video player so they could view some evidence in the case.
The jurors must decide whether Toyota's design of the 1996 Camry had a defect that was unreasonably dangerous. If they find there was a defect, they must decide if it directly caused injuries to those hurt or killed when Koua Fong Lee crashed into another car in 2006.
Lee spent 2 1/2 years in prison before being released after reports suggested some Toyota cars had sudden acceleration problems.
BILLINGS, Mont. (AP) -- As Congress presses the Obama administration to approve the Keystone XL pipeline, government records show oil pipeline accidents have become increasingly frequent in the U.S.
An Associated Press review shows accident numbers growing steadily since 2009, reversing a decade-long decline.
Keystone would go from Canada to the Gulf, passing near where 30,000 gallons of crude spilled into Montana's Yellowstone River earlier this month.
The recent breach became the latest in a string of spills to highlight ongoing problems with maintenance of the nation's crude pipeline network.
After the U.S. Senate voted Thursday in favor of Keystone, Sen. Maria Cantwell of Washington state cited the increase in spills in calling for Obama to veto the measure.
Keystone supporter North Dakota Democrat Sen. Heidi Heitkamp said building it was preferable to using older pipelines.
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