Despite bad weather, state's February tax collections see big increase

There was some concern that the snow would affect tax collections for February, but the state is saying that is not the case.

According to a release, tax collections actually exceeded the budgeted estimates for February with overall revenues for the month coming in at $787.2 million, which is $25.8 million more than the state budgeted.                        

“Sales tax collections in February marked the seventh consecutive month this fiscal year in which collections exceeded budgeted expectations,” Department of Finance and Administration Commissioner Larry Martin said.  “As a result of a one-time event, Franchise and Excise tax collections were also above expectations.  

“The renewed strength in our sales and corporate tax collections is an indication of an improving economy in Tennessee.  However, more than half of our annual corporate collections materialize April through June, so we’ll continue conservative spending and monitoring revenue activity.”  

The general fund was over collected by $13.1 million and the four other funds were over collected by $12.7 million.

Sales tax collections were $17.9 million more than the estimate for February.  The February growth rate was positive 7.6 percent. The year-to-date growth rate for seven months is positive 6.86 percent.

Franchise and excise taxes combined were $7.3 million above the budgeted estimate of $42.8 million. For seven months revenues are over collected by $165.2 million. The year-to-date growth rate for seven months is positive 29.41 percent.

Gasoline and motor fuel collections for February increased by 8.71 percent, and were $3.8 million above the budgeted estimate of $66.3 million. For seven months revenues are over collected by $14.5 million.

Tobacco tax collections were $3.3 million under the budgeted estimate of $21.5 million. For seven months revenues are under collected in the amount of $5.9 million.

Inheritance and estate taxes were under collected by $1.9 million for the month. Year-to-date collections for seven months are $12.0 million more than the budgeted estimate.

Privilege tax collections were $2.6 million less than the February estimate, and on a year-to-date basis, August through February, collections are $2.4 million above the estimate.

Business tax collections were $4.5 million above the February budgeted estimate, and for seven months collections are $18.3 million more than the budgeted estimate of $20.6 million.

Year-to-date collections for seven months were $369.7 million more than the budgeted estimate. The general fund was over collected by $336.5 million and the four other funds were over collected by $33.2 million.