Collections Stay Negative

Tennessee’s revenue collections for October were $709.1 million, only a slight increase over last year, making total year-to date collections $217.7 million less than the budgeted estimate.

“October is the third consecutive month this fiscal year in which sales taxes and corporate income taxes have experienced negative growth rates,” finance and administration commissioner Dave Goetz said in a statement. “We continue to be concerned with the year-to-date negative growth in our tax collections, but we are completely committed to balancing the state’s budget in a responsible manner during this extraordinary national economic downturn.”

October collections were $75.8 million less than the budgeted estimate.

Sales tax collections were $40.9 million less than the estimate for October. Franchise and excise tax collections were $17.9 million less than what was collected the previous year, and they were $23.7 million below the budgeted estimate.

Gasoline and motor fuel collections decreased by 16.21% and were $10.1 million below budgeted estimates. Tobacco tax collections were $2.7 million over the previous year.

Gov. Phil Bredesen has asked state agencies to cut their budgets 3% and is in the process of holding budget hearings.

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