revenue

TN September tax collections $58.8M over estimates

News release from Department of Finance and Administration

NASHVILLE, Tenn. – Tennessee’s revenues exceeded budgeted estimates for the second month of the state’s fiscal year.  Finance and Administration Commissioner Larry Martin today reported that overall September revenues were $1.4 billion, which is $48.3 million more than September of last year and $58.8 million more than the budgeted estimate. The growth rate for September was 3.68%.

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State Department of Revenue gets oversight of phone bill fees

A state law that took effect in July may end legal disputes between Tennessee’s local emergency communications districts and telecommunications companies over 911 fees by giving new authority to the state Department of Revenue, reports the Times Free Press.

Sponsored by Sen. Todd Gardenhire, R-Chattanooga, and Rep. Judd Matheny, R-Tullahoma, the bill was passed in 2016. It puts the department in charge of ensuring telecommunications firms such as AT&T collect and turn over state-mandated surcharges on landline and cellphone bills. The fees go to county 911 centers to provide operations and support for fire, police, medical and other emergency communications.

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June TN tax collections: $112M over budget estimates

News release from Department of Finance and Administration

NASHVILLE,  Tenn. – Total tax revenues for June were above budgeted expectations. Finance and Administration Commissioner Larry Martin announced today that overall Tennessee tax revenues in June, led by strong growth in franchise and excise (F&E) taxes, were $1.4 billion, which is $112.1 million more than the state budgeted.

“While we are encouraged by the positive revenue numbers, we need to be mindful of two important points,” Martin said. “First, the Funding Board in November 2016 revised upward for the fiscal year 2017 budget the anticipated positive variance for overall Tennessee taxes. As a result, $663.3 million of the fiscal year 2017 unaudited year to date positive variance of $731.3 million general fund revenue is already included in the fiscal year 2018 budget. Secondly, F&E tax payments by businesses are estimates of their tax liability and are subject to change.”

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May state revenue $53M above exepections

News release from Department of Finance and Administration

NASHVILLE, Tenn. – Tennessee tax revenues exceeded budgeted estimates in May. Department of Finance and Administration Commissioner Larry Martin today announced that overall May revenues were $1.1 billion, which is $53.1 million more than the state budgeted.

“Total reported revenues in May reflect significant improvement compared to this time last year and were driven primarily by sales tax receipts,” Martin said. “Franchise and Excise taxes fell short of last year’s revenues and were below the monthly budgeted estimate.  All other tax revenues, taken as a group, were more than the May estimates.

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State revenue back on surplus track in April: $149K over budget estimate

News release from the Department of Finance and Administration

NASHVILLE, Tenn.  – Tennessee tax revenue exceeded budgeted estimates in April. Department of Finance and Administration Commissioner Larry Martin today announced that overall April revenues were $1.9 billion, which is $148.9 million more than the state budgeted.

“Total reported revenues in April reflect significant improvement over this time last year and were driven primarily by franchise and excise payments, sales tax receipts and business tax revenues,” Martin said.   “The Hall income tax posted a significant reduction from receipts received in April 2016 and was much less than budgeted expectations. All other tax revenues, taken as a group, were more than the April estimates.

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TN tax revenue $70M below budget estimate in March

News release from the Department of Finance and Administration

Department of Finance and Administration Commissioner Larry Martin today announced that Tennessee tax revenue fell short of budgeted estimates in March. March sales tax revenues reflect retail activity occurring in February, and overall March revenues were $993.6 million, which is $100.9 million less than we collected in March of 2016 and $70.1 million less than the budgeted estimate for the month.

“March sales tax revenues recorded negative growth and were also below our budgeted expectations,” Martin said. “This is due in part to having one less day of retail activity this February compared to February 2016 and also growing over an extraordinarily high base from last year. In addition, the Department of Revenue implemented a new tax administration system this month and extended the sales tax filing deadline. The April report should capture any March outstanding liability taxpayers owe.

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February state revenue $21.1M above budget projections

News release from Department of Finance and Administration

NASHVILLE, Tenn. – Tennessee tax revenues exceeded budgeted estimates in February. Department of Finance and Administration Commissioner Larry Martin today announced that overall February revenues were $846.7 million, which is $28.4 million more than the state received in February 2016 and $21.1 million more than the state budgeted. The overall growth rate for February was 3.48%.

““The state experienced better sales tax revenues than expected for February,” Martin said. “Receipts were in excess of the budgeted estimate. Franchise and Excise taxes recorded negative growth for the month and were also less than budgeted estimates. Nonetheless, the strong sales tax growth pushed total revenues for the month higher than budget expectations.”

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Big bounce: State revenue $169M over budget estimates in January

News release from Department of Finance and Administration

NASHVILLE, Tenn. – Tennessee tax revenues were above budgeted estimates for January. Finance and Administration Commissioner Larry Martin today announced that overall January revenues, driven by a very large one-time franchise and excise tax payment, were $1.4 billion. Total revenues were $169.1 million more than the state budgeted and 10.54% more than revenues received in January of last year.

“Adjusting the January recorded revenues for the substantial one-time payment reduces the underlying growth rate for total tax revenues from 10.54% to 1.90%,” Martin said. “Sales tax revenues recorded growth slightly in excess of the budgeted estimates as sales tax growth returned to a now-normal level.”

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Haslam out-of-state sales tax rule draws legal challenge

Gov. Bill Haslam said Monday that the state’s move to require all major online vendors to collect sales taxes on purchases made in Tennessee has drawn a legal challenge, reports the Associated Press.

Under current federal law, online retailers can only be required to collect sales taxes if they have a physical presence in the state such as a store or office there. Consumers ordering from out-of-state retailers are technically required to pay the tax to the state Revenue Department, but few do.

Haslam’s tax rule seeks to extend the requirement to collect the tax to any retailer with sales of more than $500,000 per year in Tennessee. The rule is similar to efforts that have fallen short in Congress.

…The Republican governor says the legal challenge was filed late last week after the state sent out notices to companies about the change.

“We figured when we passed that that we would be sued ,” Haslam told a Republican gathering in Nashville. “We have been sued.”

Haslam spokeswoman Jennifer Donnals later clarified that the challenge was filed in the form of an administrative proceeding before the state Revenue Department. The identity of the petitioner and the petition itself are covered by state confidentiality laws, she said.

Haslam said he hopes the U.S. Supreme Court ultimately gets an opportunity to revisit the out-of-state sales tax rules for the first time since 1992, which came before online commerce was as prevalent as it is today.

“We think the world’s changed,” Haslam said.

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State revenue was $150M over estimates in December

News release from Department of Finance and Administration

NASHVILLE, Tenn. – Tennessee revenues for December exceeded the same month one year ago.  Finance and Administration Commissioner Larry Martin reported today that state revenues for December were $1.2 billion, which is a growth of 11.33% and $125.5 million more than December 2015.

“Total revenues in December were higher than expected due to collections in the sales and corporate tax categories. Recorded revenues in the corporate category for December include a substantial one-time payment,” Martin said. “December sales tax revenues reflect retail activity that occurred in November including ‘Black Friday’ and after-Thanksgiving sales. January’s report will capture consumer spending for the Christmas holiday season. Continue reading