State Enjoys May Revenue Surplus
Tennessee taxpayers provided the state of Tennessee an unexpected windfall of nearly $12 million in surplus tax revenue in May, according to the May revenue totals released in the last hour by the Gov. Don Sundquist administration. The May revenue numbers reflect economic activity (sales, etc) in April.

The state collected $592.5 million in taxes in May, which is $6.4 million than it collected in May 2001 - and $11.9 million more than was estimated in the budget for the month.

That means the revenue shortfall shrank by $11.9 million in May, and with two months left in the fiscal year, Tennessee's shortfall is down to $364.1 million, which is well below the $450 million to $475 million doomsday figure being bandied about by the Sundquist administration.

Here is the June 11 press release on the May revenue numbers:

On an accrual basis May is the tenth month in the 2001-2002 fiscal year. Department of Revenue tax collections were $592.5 million, an increase of $6.4 million or 1.10% over last year.

Revenues were $11.9 million more than the budgeted estimates, Finance and Administration Commissioner C. Warren Neel announced today. The general fund had an overcollection of $5.8 million and the four other funds overcollected by $6.1 million for the month.

Sales tax collections decreased by 1.00% in May which is $3.6 million less than the estimate. For the year sales tax collections have increased only $649,000 or 0.02%. The budgeted increase was 3.07%.

Franchise and excise taxes combined were $33.3 million for the month, a decrease of $348,000 or -1.03% for the month. Collections were $1.6 million less than the estimate.

For the month inheritance tax overcollected by $6.1 million and privilege taxes by $4.8 million.

Gasoline taxes and motor vehicle registrations were $6.5 million more than the budgeted estimates of $89.3 million.

Year-to-date collections for ten months are $364.1 million less than the budgeted estimates for all funds and $335 million less than the general fund estimate.

The budgeted revenue estimates are based upon the State Funding Board's consensus recommendation adopted by the first session of the 102nd General Assembly in June of last year.