Good News on Revenues

State sales tax revenues for July jumped with the largest monthly growth in over three years. Finance and Administration Commissioner Dave Goetz today reported July’s total revenue collections were up from July of last year. The last month in which sales tax collections exceeded this month’s growth rate was April of 2007.

“We believe the growth in both sales and corporate tax collections point to an economic recovery in Tennessee; however, we will continue to be cautious, keeping our budget in balance as we move forward,” Goetz said. “Franchise and Excise tax collections showed negative growth for the month, but this can be attributed to significant one-time payments received in July of 2009.The year-to-date growth in our corporate tax collections have shown considerable improvement over last year, posting a gain of over 4 percent,” Goetz said.

Overall, July revenues were $833.6 million or $22.5 million more than the state budgeted. Although sales tax collections were $1.0 million less than the estimate for July, the July growth rate was 5.94%. For twelve months revenues are under collected by $225.7 million. The year-to-date growth rate for twelve months was negative 2.25%.

Gasoline and motor fuel tax collections for July decreased by 0.36 %. For twelve months revenues are under collected by $8.2 million.

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