Tennessee Dec. Tax Revenues Exceed Projection
Tennessee revenue collections for December came in stronger than the same month a year before. Finance and Administration Commissioner Mark Emkes reported today that state revenue collections for December were $982.2 million, which is 1.71% above December 2011. December sales tax collections represent consumer spending that occurred in November.
“Total revenues in December were higher than expected due to over collections in the sales and corporate tax categories,” Emkes said. “We believe the December sales tax growth rate, which includes ‘Black Friday’ and after-Thanksgiving sales, may reflect renewed consumer confidence, but January’s report will give us a fuller picture with Christmas retail activity.
“Because of anticipated requirements for Fiscal Year 2014, we will closely monitor our spending for the balance of this year, working closely with the Legislature in order to end this year with a balanced budget.”
On an accrual basis, December is the fifth month in the 2012-2013 fiscal year.
December collections were $22.0 million more than the budgeted estimate. The general fund was over collected by $24.8 million and the four other funds were under collected by $2.8 million.
Sales tax collections were $11.7 million more than the estimate for December. The December growth rate was 5.01%. For five months revenues are under collected by $18.3 million, and the year-to-date growth rate is 2.51%.
Franchise and excise taxes combined were $12.6 million above the budgeted estimate of $230.4 million. For five months revenues are over collected by $91.4 million.
Gasoline and motor fuel collections for December decreased by 7.52% and they were $3.4 million below the budgeted estimate of $66.1 million. For five months revenues are under collected by $11.8 million.
Tobacco tax collections were $2.2 million below the budgeted estimate of $24.9 million, and for five months they are $6.7 million below the budgeted estimate.
Privilege tax collections were $3.8 million more than the budgeted estimate of $14.5 million. Year-to-date collections for five months are $10.8 million above the budgeted estimate.
Inheritance and estate taxes were under collected by $1.6 million for the month. For five months collections are $4.4 million above the budgeted estimate.
All other taxes were over collected by a net of $1.1 million.
Year-to-date collections for five months were $73.6 million more than the budgeted estimate. The general fund was over collected by $84.1 million and the four other funds were under collected by $10.5 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.
The State Funding Board met on December 14, 2012 to hear updated revenue projections from the state’s various economists. The board met again on December 19 and adopted revised revenue ranges for 2012-2013. The revised ranges assume an over collection from the July 2012 budgeted estimate in the amount of $203.0 million to $287.3 million in total taxes and in the amount of $224.2 million to $305.9 million in general fund taxes for the current fiscal year.
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Last Update on March 30, 2015 07:27 GMT
ECONOMY-THE DAY AHEAD
WASHINGTON (AP) -- It's all about the consumer and housing early this week.
Today, the Commerce Department will release personal income and spending for February and the National Association of Realtors will report on pending home sales index for February.
On Tuesday, Standard & Poor's will issue the S&P/Case-Shiller index of home prices for January and the Conference Board will release the Consumer Confidence Index for March.
NABE ECONOMIC FORECAST
WASHINGTON (AP) -- A new survey finds economists are expecting much stronger growth this year and next.
The National Association for Business Economics survey finds' a median forecast of 3.1 percent growth in real gross domestic product in 2015, compared a 2.4 percent gain in real GDP last year.
NABE President John Silvia, who's also the chief economist of Wells Fargo, says there's promising news for jobs too. The panelists' median forecast is for net job creation to average approximately 250,000 per month in 2015 and 216,000 per month next year. NABE says the unemployment rate is expected to continue its downward trend over the next several quarters, reaching 5 percent by the second half of 2016.
As for what the Federal Reserve will do, Silva says 88 percent of the panelists believe the Fed will start tightening monetary policy in the second or third quarter of 2015.
AUTO SHOW-LINCOLN CONTINENTAL
DEARBORN, Mich. (AP) -- Elvis Presley had one. So did presidents from Kennedy to Reagan.
Now, the Lincoln Continental is back.
Ford Motor Co. is resurrecting the Continental with a concept car debuting at this week's New York Auto Show. The full-size sedan goes on sale next year.
The Continental dates to the late 1930s and was once the pinnacle of luxury. But Ford stopped producing it in 2002 when sales slowed.
Now, it's returning the Continental to the top of Lincoln's car lineup. The concept car has a new, smaller grille and a more elegant look. It also has new technology, including hidden door handles.
Ford hopes to take advantage of luxury sales growth in China, where customers appreciate Lincoln's history. It's opening more than 20 Lincoln dealerships in China this year.
CANBERRA, Australia (AP) -- Australia has announced that it will join negotiations to establish a new a Chinese-led Asian regional bank.
The U.S. has expressed concern the new Asian Infrastructure Investment Bank, or AIIB, will allow looser lending standards for the environment, labor rights and financial transparency. The U.S. also worries the new bank will undercut the World Bank, where the U.S. has the most clout, and the Asian Development Bank, where it is the second-largest shareholder after Japan.
Prime Minister Tony Abbott, Foreign Minister Julie Bishop and Treasurer Joe Hockey said in a joint statement on Sunday that the government will sign a memorandum of understanding that will allow Australia to participate as a prospective founding member in negotiations to set up the bank.
RALEIGH, N.C. (AP) -- Duke Energy's CEO is paying a price for a massive spill of collected coal ash that coated 70 miles of a North Carolina river in sludge containing toxic heavy metals.
An annual statement released ahead of the Charlotte-based company's May shareholder meeting says Chief Executive Officer Lynn Good's $8.3 million compensation in 2014 was cut by about $600,000. The top financial officer and three other executives saw similar 35 percent reductions in compensation tied to annual performance.
Directors of the country's largest electric company said in the company proxy statement released this week that the executives were docked because the spill will cost Duke Energy more than $190 million in cleanup, legal fees, and fines to settle a pending criminal case involving Clean Water Act violations.
LONDON (AP) -- Britain says it will become the first country to offer all babies a vaccine for potentially fatal meningitis B after it reached a price deal with GlaxoSmithKline PLC.
Government health advisers recommended use of the Bexsero vaccine last year, and the government has spent months negotiating over the cost.
The drug was owned by Novartis, which recently sold most of its vaccines business to GlaxoSmithKline.
Health Secretary Jeremy Hunt said Sunday he was "very proud that we will be the first country in the world to have a nationwide Men B vaccination program."
Babies will receive the vaccine at two months, followed by two further doses.
Meningitis is a bacterial infection of the lining surrounding the brain and spinal cord that most commonly affects children and teenagers.
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