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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 December 19, 2014 08:36 GMT
ECONOMY-THE DAY AHEAD
WASHINGTON (AP) -- The Labor Department will report on November's state unemployment rates this morning.
In October, unemployment rates fell in 34 U.S. states, a sign that steady hiring this year has been broadly dispersed throughout most of the country.
WASHINGTON (AP) -- Major insurer MetLife Inc. says U.S. regulators have labeled it as a potential threat to the financial system, a designation that brings stricter government oversight.
MetLife said Thursday that the Financial Stability Oversight Council has designated the company as "systemically important." As a result, MetLife must increase its cushion of capital against losses, limit its use of borrowed money and submit to inspections by examiners. MetLife will come under the supervision of the Federal Reserve. Its primary regulator now is New York state.
In a statement, New York-based MetLife said it is "disappointed" in the decision and has given the regulators evidence showing it is not systemically important.
MetLife was the third nonbank financial firm to be given the label by the council, a group of top regulators.
ALLY FINANCIAL-GOVERNMENT EXIT
WASHINGTON (AP) -- The government is selling the last of its shares in Ally Financial Inc., the former financing arm of General Motors that was bailed out during the financial crisis.
Detroit-based Ally says the Treasury Department is selling its remaining 54.9 million shares. That amounts to about an 11 percent stake in the company. At the close of trading Thursday, that would be worth about $1.25 billion.
Ally, formerly called GMAC Inc., received a $17.2 billion bailout that began in 2008. It's now a standalone auto financing company and bank.
Ally says that the government has received $18.3 billion from its investment in the company. Ally went public in April and Treasury sold a chunk of its stake then.
PORTLAND, Ore. (AP) -- Uber says it's suspending operations in Portland, Oregon, for three months to work out its differences with city officials, less than two weeks after the ride-hailing app's launch was greeted with a lawsuit.
Uber general manager Brooke Steger wrote in a blog post Thursday that Portland is working to update its regulations for private for-hire transportation that would allow Uber to operate.
Mayor Charlie Hales said in a statement that a task force will make recommendations by mid-April on permits, pricing systems, insurance, and safety inspections, among other issues.
The city sued Uber three days after its Dec. 5 launch, asking a judge to order the San Francisco-based company to cease operations. The city said Thursday that it's no longer seeking a restraining order.
Uber will continue operating in the Portland suburbs.
LOS ANGELES (AP) -- West Coast dockworkers and their employers don't appear to be close to agreeing on a new contract, nearly six months after their old deal expired.
Longshoremen at 29 ports from San Diego to Seattle that handle billions of dollars of trade with Asia have continued to work without a contract.
The two sides are meeting in San Francisco.
The Pacific Maritime Association represents oceangoing shipping lines and the operators of cargo terminals at the ports that employ longshoremen. A spokesman for the association says the two sides "remain far apart on several issues."
A spokesman for the dockworkers' union says its negotiators are eagerly awaiting a reply from the association on the union's latest proposal.
ENGLEWOOD CLIFFS, N.J. (AP) -- Hellman's mayonnaise maker Unilever says that it has withdrawn its lawsuit against the maker of "Just Mayo."
Unilever had filed suit against Hampton Creek earlier this year claiming false advertising for Just Mayo, an eggless product.
Unilever argued that "Just Mayo" has no eggs and therefore doesn't meet the definition of mayonnaise. Unilever had said that the word mayo implies that the product is mayonnaise, and that Just Mayo was stealing market share from Hellman's.
Unilever said Thursday that it decided to withdraw the lawsuit so that Hampton Creek can address its label directly with industry groups and regulatory authorities.
Hampton Creek says it marketed its product as "mayo" to meet labeling regulations.
BOSTON (AP) -- A 22-year-old woman who fell two stories down an elevator shaft at Fenway Park and was seriously injured is suing the owner of the Boston Red Sox and an elevator company.
Elisabeth Scotland of Brigantine, New Jersey, sued Wednesday in Superior Court in Boston against Fenway Sports Group and Otis Elevator Co. of Farmington, Connecticut. The suit seeks an unspecified amount in damages.
The suit says Scotland fell when a closed elevator door opened when she brushed up against it, and she suffered a traumatic brain injury, spinal injuries, facial fractures and dental damage.
A Red Sox spokesperson declined to comment on the accident, but said all Fenway Park elevators are safe and the team wishes Scotland well.
Messages were left Thursday for an Otis Elevator spokeswoman.
CHICAGO (AP) -- China is promising to streamline a regulatory process that has held up imports of pharmaceuticals and medical devices from the United States. The country also pledges to enforce its anti-monopoly laws equally among Chinese and foreign companies.
The agreements were announced Thursday at an annual trade meeting in Chicago.
Assistant Minister of Commerce Zhang Xiangchen told reporters that China would work to speed up the review and approval of U.S. products in the pharmaceutical and medical industries and address the current backlog within two to three years.
Zhang said China would also reduce what he called "needless clinical trials."
The U.S. delegation was led by Commerce Secretary Penny Pritzker and U.S. Trade Representative Michael Froman.
Pritzker said China's promises on anti-trust laws were especially "significant."
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