NASHVILLE - Franchise and excise taxes, coupled with strong sales tax collections in June raised revenue collections for the month to $1.2 billion, or $110.0 million more than the state budgeted.
"Corporate taxes are highly volatile, and they've been the primary source of much of our revenue growth in Tennessee," Finance & Administration Commissioner Dave Goetz said. "We're pleased to see that sales tax collections were up for June - even though they're undercollected for the year."
On an accrual basis, June is the eleventh month in the 2006-2007 fiscal year.
The general fund was over collected by $105.4 million, and the four other funds were over collected by $4.6 million.
Sales tax collections were $15.5 million more than the estimate for June. The June growth rate was 4.80%. For eleven months revenues are under collected by $9.8 million. The year-to-date growth rate for eleven months was 4.57%.
Franchise and excise taxes combined were $60.6 million above the budgeted estimate of $239 million. For eleven months revenues are over collected by $214 million.
Inheritance and estate tax collections were $8.7 million above the June estimate. For eleven months collections are $37.9 million above the budgeted estimate.
Gasoline and motor fuel collections for June increased by 4.4 %. For eleven months revenues are over collected by $11.1 million.
Year-to-date collections for eleven months were $359.8 million more than the budgeted estimate. The general fund was over collected by $320.4 million and the four other funds were over collected by $39.4 million.
The budgeted revenue estimates are based on the State Funding Board's consensus recommendation adopted by the second session of the 104th General Assembly in May of 2006.