Tennessee reported that revenues for December totaled $885.7 million, a decrease of 3.7% from December 2006.
That figure represents a slight improvement in consumer spending, but business taxes continued to show weakness, according to the state Finance and Administration division, which is headed by Dave Goetz.
“Sales taxes in December brought us the largest monthly growth rate so far this fiscal year,” he said. “However, we are still monitoring business taxes very closely, as collections in the current month will tell us if the drop off we saw in October was a trend.”
Sales and use tax collections, the state’s main revenue source, totaled $562 million, an increase of $25 million, or 4.7% over the December 2006 collections. Tennessee has no personal income tax.
On an accrual basis, December is the fifth month in the 2007-2008 fiscal year.