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VOL. 123 | NO. 27 | Friday, February 08, 2008

Fall in Jan. Revenues Result Of Sales Tax Drop

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NASHVILLE (AP) - Tennessee's overall revenues fell $110,000 below projections in January, mainly because of a drop in sales tax collections.

"This is the first time in more than three decades that sales tax receipts for December dropped below the previous year, yielding a negative growth rate," Finance Commissioner Dave Goetz said Wednesday. "It confirms what retailers have already reported, that consumer spending was disappointing in December."

Goetz said that sales tax collections came in about $26.6 million below the budgeted estimate of $86.1 million for January.

However, franchise and excise taxes combined were $37.8 million above the budgeted estimate of $142.8 million, which Goetz said offset the drop in sales tax collections.

For the second straight month, there was a shortfall in the general fund. It was under- collected by $183.2 million in January, following a $51 million shortfall in December.

Tobacco tax collections were $3.3 million below the budgeted estimate of $26.5 million, and for six months they are $43.6 million under the budgeted estimate.

"We will manage our way through this," Goetz said.


Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 80 80 1,143
MORTGAGES 81 81 1,450
FORECLOSURE NOTICES 0 0 0
BUILDING PERMITS 0 0 2,022
BANKRUPTCIES 58 58 837
BUSINESS LICENSES 27 27 353
UTILITY CONNECTIONS 0 0 777
MARRIAGE LICENSES 13 13 197

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