Net state sales tax revenue down, could impact Knox

It’s overall numbers, and it’s from a news release, but as the finishing touches go on the Knox County budget, expect that this will be reflected in Mayor Tim Burchett’s budget announcement 15 days away.

Also, the county did calculate its sales tax earnings below the state estimate. Read below, yet again, another month of short revenues (h/t Humphrey):

Tennessee revenue collections reflected mixed results in March. Finance and Administration Commissioner Larry Martin today reported that overall March revenues were $955.8 million. The general fund was under collected by over $4 million for March and by $263.9 million year-to-date.

“March collections continued to reflect weaker than anticipated revenues from the corporate sector, while sales tax collections were stronger,” Martin said. “We believe the recent increase in retail spending is a reflection of renewed consumer confidence and indicates that the economy is slowly recovering. This growth is important in meeting current revenue projections on which the approved budget amendment was based.

“About a fourth of our corporate income taxes often – but not always – occur in the month of April. We will work with the legislature and others to manage the state’s spending and resources regardless of the economic climate, as the state has always done.”

On an accrual basis, March is the eighth month in the 2013-2014 fiscal year. Total tax collections in March were 2.10% above the previous year.

The general fund was under collected by $4.1 million and the four other funds were over collected by $6.9 million.

Sales tax collections were $9.4 million more than the estimate for March. The March growth rate was positive 5.51%. For eight months revenues are under collected by $23.4 million. The year-to-date growth rate for eight months was positive 3.58%.

About Gerald

A reporter in Knoxville, TN. Work (mostly) inside and play (mostly) outside. I'm a part of the X or the Y generation. None of us claim the other.
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