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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 August 27, 2014 17:13 GMT
WASHINGTON (AP) -- The Congressional Budget Office is forecasting that the U.S. economy will grow by just 1.5 percent in 2014, undermined by a poor performance during the first three months of the year.
The new assessment was considerably more pessimistic than that of the Obama administration, which predicted last month that the economy would expand by 2.6 percent this year even though it contracted by an annual rate of 2.1 percent in the first quarter.
The economy did grow by 0.9 percent during the first half of 2014.
Looking ahead, the CBO said it expects the economy to grow by 3.4 percent over 2015 and 2016, and predicted that the unemployment rate would remain below 6 percent into the future.
WASHINGTON (AP) -- Financial firms that sell securities backed by loans, like the kind that fueled the 2008 financial crisis, will have to give investors details on borrowers' credit record and income under action taken Wednesday by federal regulators.
The Securities and Exchange Commission adopted the rules for securities linked to mortgages and auto loans on a 5-0 vote.
The commissioners also voted, 3-2, to impose conflict-of-interest rules on the agencies that rate the debt of companies, governments and issues of securities.
Home mortgages bundled into securities and sold on Wall Street soured after the housing bubble burst in 2007, losing billions in value. The vast sales of risky securities ignited the crisis that plunged the economy into the deepest recession since the Great Depression and brought a taxpayer bailout of banks.
PARIS (AP) -- IMF chief Christine Lagarde has been put under official investigation for negligence in a French corruption probe that dates back to her days as France's finance minister.
After a fourth round of questioning before magistrates today, Lagarde said she would return to her work in Washington later in the day and said in a statement the investigation was "without basis." She is the third IMF managing director in a decade to face legal troubles.
Lagarde and her former chief of staff face questions about their role in a 400 million-euro ($531 million) payment to a businessman with a checkered past.
Under French law, the official investigation is equivalent to preliminary charges, meaning there is reason to suspect an infraction. Investigating judges can later drop a case or issue formal charges and send it to trial.
WASHINGTON (AP) -- The Treasury Department has sanctioned a leader and a financial network used by a Pakistan-based terrorist group blamed for the 2008 attack in Mumbai, India that killed 166 people.
Treasury sanctioned Muhammad Iqbal and Asma Money Exchangers for their suspected ties to Lashkar-e-Taiba (LAHSH'-kahr ee TOY'-buh). David Cohen, undersecretary for terrorism and financial intelligence, said Iqbal uses his business to conduct financial transactions on behalf of the terrorist organization and its affiliates.
Lashkar-e-Taiba, a well-organized group based in Pakistan's Punjab province, also is suspected of having historical ties to Pakistani intelligence.
The action freezes any assets they might have in U.S. jurisdiction and bans U.S. citizens from doing business with them.
GENERAL MOTORS-TENNESSEE FACTORY
SPRING HILL, Tenn. (AP) -- General Motors is moving production of the next-generation Cadillac SRX crossover SUV from Mexico to a factory in Spring Hill, Tennessee.
The company also announced that it will add production of some small gasoline engines to the Spring Hill complex.
The additions will bring more jobs to Spring Hill, but a spokesman wouldn't give specifics on how many would be added to the sprawling former Saturn facility about 40 miles south of Nashville.
The complex now employs just over 2,300 workers, including hourly and salaried employees and those who work for parts supply companies.
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