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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.
More Business News
Last Update on October 20, 2014 07:27 GMT
WASHINGTON (AP) -- A new business survey finds hiring is healthy but pay raises, not so much.
The quarterly survey by the National Association for Business Economics finds that only 24 percent of companies increased wages and salaries in the July-September quarter. That's down from 43 percent in the April-June quarter and the first drop after three straight increases.
Yet the firms still added jobs at a healthy pace, which usually pushes wages higher as employers compete for workers. The figures suggest that the number of people out of work remains high enough that companies aren't under any pressure to raise pay.
And just one-third of respondents said they expect their companies will boost wages in the October-December quarter.
The NABE surveyed 76 of its member economists in late September
ECONOMY-THE DAY AHEAD
UNDATED (AP) -- Investors will have many more corporate earnings reports to look at this week.
Apple will report third quarter financial results today after the market closes.
Tomorrow, Coca-Cola, Reynolds American, Verizon Communications and McDonald's will report earnings before the market opens. Discover Financial Services and Yahoo will report results after the closing bell.
Also on Tuesday, the National Association of Realtors will release existing home sales for September.
OVERLAND PARK, Kan. (AP) -- Sprint Corp. has cut 452 jobs from its Overland Park, Kansas, headquarters as part of a previously announced cost-cutting effort.
The nation's third-biggest cellphone carrier disclosed the layoffs in a filing with the Kansas Department of Commerce.
The report, which was filed Friday, covers the first installment of layoffs planned throughout October. The Kansas City Star reports that it doesn't cover any job losses outside the headquarters campus, although they are believed to be happening too.
The company said earlier this month in a filing with the Securities and Exchange Commission that it was cutting an unspecified number of jobs to better compete with AT&T and Verizon. Sprint said it would book a $160 million charge in its fiscal second quarter to cover the layoffs, which include managers as well as other employees. It may take more charges for future job cuts.
Another 477 Sprint employees in Overland Park were laid off earlier this year, bringing this year's job cut total to 929
Before the newly disclosed layoffs, about 7,500 worked for Sprint in the Kansas City area.
LOS ANGELES (AP) -- The bloody World War II drama "Fury" blew past "Gone Girl" at theaters this weekend.
"Gone Girl" was tops at the box office for two weeks before Brad Pitt and his rag-tag group of tank mates in "Fury" blasted the film to second place.
According to studio estimates Sunday, Sony's "Fury" captured $23.5 million in ticket sales during its opening weekend. Fox's "Gone Girl" followed with $17.8 million.
Two other new movies landed in the top five: The animated Fox feature "The Book of Life" opened in third place with $17 million; and Relativity's Nicholas Sparks romance "The Best of Me" debuted in fifth place with $10.2 million.
Disney's "Alexander and the Terrible, Horrible, No Good, Very Bad Day" placed fourth, dropping one spot since opening last weekend.
JAPAN-TRADE MINISTER RESIGNS
TOKYO (AP) -- Japan's trade minister has announced her resignation after allegations that she violated election laws.
Yuko Obuchi's resignation on Monday is the first for the current administration of Prime Minister Shinzo Abe and could dent his efforts to raise the profile of women both in politics and business.
The questions over Obuchi's use of election funds are the latest in a series of uproars over activities by some members of Abe's Cabinet. Obuchi is one of five women Abe appointed to Cabinet-level posts in a reshuffle last month that highlighted his commitment to promoting women to leadership positions.
BERLIN (AP) -- Germany's finance minister says he's confident he can keep promises to balance the budget next year and is rejecting anew suggestions that the country should borrow to finance greater public investment.
Chancellor Angela Merkel is determined to stick to plans to get by without new borrowing next year for the first time since 1969, though Germany's growth outlook has weakened and Berlin faces calls from abroad to pump money into the economy.
Finance Minister Wolfgang Schaeuble acknowledged in Sunday's Welt am Sonntag newspaper that Germany "must invest more and improve our competitiveness." But he added: "We just don't want growth on credit."
Schaeuble said it's important to keep to promises and says he's confident a balanced budget can be achieved because "tax income doesn't react so quickly to economic changes."
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