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 February 27, 2015 18:54 GMT
WASHINGTON (AP) -- The U.S. economy slowed more sharply in the final three months of the year than previously believed, reflecting weaker business and a bigger trade deficit.
The Commerce Department said Friday that the economy as measured by the gross domestic product grew at an annual rate of 2.2 percent in the October-December quarter, less than the 2.6 percent first estimated last month. It marked a major slowdown from the third quarter, which had been the strongest growth in 11 years.
Economists remain optimistic that the slowdown will be only temporary. In fact, many forecast that growth will accelerate to above 3 percent in 2015, which would give the country the strongest economic growth in a decade.
WASHINGTON (AP) -- Harsh winter weather left U.S. consumers feeling a bit less confident this month, the University of Michigan says. But confidence levels still remain at the highest level in eight years.
The University of Michigan says its index of consumer sentiment slid to 95.4 in February from an 11-year high of 98.1 in January.
Earlier this week, the Conference Board, a business research group, said that its consumer confidence index fell a bit this month but remained at the highest levels since before the Great Recession began in late 2007.
PENDING HOME SALES
WASHINGTON (AP) -- The number of Americans signing contracts to buy homes rose at a healthy pace in January, a sign that home sales are poised to accelerate after a slow start to the year.
The National Association of Realtors says its seasonally adjusted pending home sales index increased 1.7 percent to 104.2 last month. December's figure was also revised higher to show a decline of only 1.5 percent, up from a previous drop of 3.7 percent.
The data point to a rebound in sales of existing homes in the coming months, particularly as the spring buying season gets underway. Measures of sales and construction fell last month.
Pending sales are a barometer of future purchases. A one- to two-month lag usually exists between a contract and a completed sale.
FIAT CHRYSLER-SUV RECALL
DETROIT (AP) -- Fiat Chrysler is adding more than 467,000 Dodge and Jeep SUVs worldwide to a recall from last year to fix a potential stalling problem.
The company says it's adding 2012 and 2013 Dodge Durangos and 2011 Jeep Grand Cherokees outside North America to a recall from September of last year. The Jeeps have diesel engines.
Chrysler says fuel pump relays can deform and cause the pumps to malfunction. That can cause unexpected stalling or prevent the engines from starting. The company doesn't know of any crashes or injuries from the problem.
Dealers will install a new relay circuit. Chrysler says it will let customers know when they can schedule service.
The recall from last year covered 189,000 other Grand Cherokees and Durangos in the U.S.
FRANKFURT, Germany (AP) -- German automaker Volkswagen says after-tax profits rose 21 percent for last year, to 11.1 billion euros ($12.4 billion).
The maker of Volkswagen, Audi, Skoda and SEAT brand cars said Friday that it increased its profit margins during the year and proposed to increase its dividend to shareholders.
But it offered a cautious outlook for 2015, citing a "persistently challenging market environment." It said sales would increase by at least 4 percent, "depending on economic conditions." It said economic trends in Latin America and Eastern Europe could affect its commercial vehicles and power engineering businesses.
Sales revenue rose 2.8 percent last year to 202.5 billion euros. Volkswagen said it would raise its dividend to 4.80 euros per ordinary share, up from 4.00 euros in 2013.
BERLIN (AP) -- Germany's Parliament has given its overwhelming approval to the four-month extension of Greece's financial bailout, despite unease over the new government in Athens.
Lawmakers voted 542-32 on Friday to back the bailout extension. There were 13 abstentions.
Finance Minister Wolfgang Schaeuble said ahead of the vote that "this is not about new billions for Greece, not about changing this program" and stressed that the goal is to complete Greece's existing bailout successfully.
Germany, a key creditor nation, has advocated unpopular spending cuts and insisted that aid must come with strings attached. Comments by Greek officials casting doubt on privatization deals and raising the possibility of further debt relief have irked some in Germany.
MOSCOW (AP) -- Ukrainian gas company Naftogaz says that it has paid $15 million for another month of Russian gas after fears escalated that Moscow could cut off supplies.
Interfax-Ukraine news agency quoted Naftogaz's executive, Andrei Kobolev, as saying that the company had paid for gas supplies from Russia for the month of March. Russia's Ministry of Energy Alexander Novak said Thursday morning that Russia had not yet received any payments.
Following a bruising dispute over prices and debt that raised fears of supply disruptions in Europe, Russia and Ukraine signed a deal in October requiring Kiev to pay in advance for gas shipments. President Vladimir Putin and other government officials warned earlier this week that Russia would cut off supplies to Ukraine by the end of the month barring further pre-payments.
US, Cuba restart embassy talks; breakthrough seems unlikely
WASHINGTON (AP) -- The U.S. and Cuba are holding a second round of negotiations on restoring diplomatic relations after a half-century interruption. An immediate breakthrough appears unlikely.
Although the Obama administration wants embassies reopened by April's summit of North and South American leaders, the Cubans hope first to be removed from a U.S. terrorism blacklist.
Their status on that list prevents them banking and doing other basic business in the U.S. that they would need for their embassy here.
Washington is reviewing if its designation of Cuba as a terrorist state is outdated. It hasn't made a decision.
The one-day talks started Friday morning at the State Department. Roberta Jacobson, the department's senior Latin America diplomat, led the U.S. Across the table sat Josefina Vidal, Cuba's top diplomat for the United States.
STOCKHOLM (AP) -- Switzerland has become the first country to submit a pledge to the United Nations for a new global climate deal, vowing to cut its greenhouse gas emissions in half by 2030, compared to 1990 levels.
The Swiss government said Friday that at least 30 percent of the reduction would be achieved at home and the remainder through projects abroad.
The European Union, United States, China and Norway have also announced their intended targets but haven't formally submitted them to the U.N.
The new climate deal is supposed to be adopted at the end of the year at a conference in Paris. It would be the first time that all countries agree to take action to limit greenhouse gas emissions, which scientists say are warming the planet.
EBOLA TREATMENT STUDY
BETHESDA, Md. (AP) -- The U.S. and Liberian governments are starting the first formal patient testing of an experimental Ebola virus treatment that's been used on an emergency basis.
The drug, ZMapp, contains three genetically engineered proteins designed to home on a target on the surface of the deadly virus to stop the disease's progression. ZMapp, developed by San Diego-based Mapp Pharmaceuticals Inc., is "grown" in tobacco plants engineered to make large quantities of the virus-blocking proteins.
Adults and children in both countries, infected with Ebola or with suspected infection, will be included in the study.
The National Institute of Allergy and Infectious Diseases says half the participants will receive three ZMapp injections. The other half will get standard supportive treatment, including intravenous fluids and therapy to maintain blood pressure and sufficient oxygen intake.
OIL TRAIN SAFETY
WASHINGTON (AP) -- Fiery wrecks this month of trains hauling crude oil are intensifying pressure on the Obama administration to approve tougher standards for railroads and tank cars, despite industry complaints that it could cost billions and slow freight deliveries.
On Feb. 5, the Transportation Department sent the White House draft rules that would require stronger tank cars and make other safety improvements.
Nine days later a train hauling crude oil and petroleum distillates derailed and caught fire in Ontario, Canada. Less than 48 hours later, another oil train derailed and caught fire in West Virginia.
Brigham McCown was responsible for safe transportation of hazardous materials during President George W. Bush's administration. He says that the more incidents there are, the less willing the administration will be to listen to industry.
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