Sales Tax Collections Dip

Lower-than-projected sales tax collections brought total tax revenues below the amount budgeted for the state in February, according to Finance and Administration Commissioner Dave Goetz.

Overall revenue for February was $20.8 million less than the state budgeted, totaling just over $728 million.

Sales tax collections were less than the estimate and franchise and excise taxes combined were below the budgeted estimate. Tennessee has no personal income tax.

“With sales tax collections trending down for the last two months, we are looking to see if business taxes in March and April will help support our budget,” Goetz said. “We may have to look for more savings in the current fiscal year, but we have faced tougher conditions and managed our way through.”

On an accrual basis, Tennessee considers February as the seventh month in the 2007-2008 fiscal year.

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