NASHVILLE – Tennessee's sales tax collections dropped to a record low in April with a negative growth rate. Finance and Administration Commissioner Dave Goetz reported today that overall April revenues were $1.39 billion or $88.9 million less than the state budgeted.
"Almost two dozen other states are experiencing similar revenue conditions; we expected a slowdown in growth, but nothing this dramatic," Goetz said. "We are committed to keeping our spending in line with revenues, while balancing the budget without raising taxes or raiding the Rainy Day Fund to cover the shortfall."
On an accrual basis, April is the ninth month in the 2007-2008 fiscal year.
The general fund was under collected by $92.8 million, and the four other funds were over collected by $3.9 million.
Sales tax collections were $49.8 million less than the estimate for April. The April growth rate was negative 4.08%. For nine months revenues are under collected by $167.5 million. The year-to-date growth rate for nine months was 1.11%.... read the rest of the story by Subscribing now.