Tennessee Tax Revenues Down

Tennessee revenue collections for September were $976.7 million, or 8.2% below September 2007 collections.

"September is the second consecutive month in which sales taxes and corporate income taxes have shown negative growth rates," Finance and Administration Commissioner Dave Goetz said. "We are disappointed, but we'll continue to monitor expenditures very closely, as we are determined to keep the state's budget in balance for the duration of current national conditions.

"We've seen economic conditions deteriorate since November of 2007, as collections have come in under the budgeted estimate for the past ten consecutive months."

On an accrual basis, September is the second month in the 2008-2009 fiscal year.

September collections were $85.5 million less than the budgeted estimate. The general fund was under collected by $78.1 million and the four other funds were under collected by $7.4 million.

Sales tax collections were $29.1 million less than the estimate for September. The September growth rate was negative 3.42%.

Franchise and excise taxes combined were $44.9 million below the September budgeted estimate of $288.4 million. The September growth rate was negative 17.35%.

Gasoline and motor fuel collections for September decreased by 11.79% and they were $7.0 million below the budgeted estimate of $75.8 million.

Tobacco tax collections for the month were over collected by $1.6 million, and they were $6.7 million over September 2007 collections.

Inheritance and Estate tax collections were $200,000 under the budgeted estimate. All other taxes were under collected by a net of $5.9 million.

Year-to date collections for two months were $141.9 million less than the budgeted estimate. The general fund was under collected by $128.2 million and the four other funds were under collected by $13.7 million.

The budgeted revenue estimates for 2008-2009 are based on the State Funding Board's consensus recommendation adopted by the second session of the 105th General Assembly in May of 2008.