Tennessee revenues fall $51M

Corporate franchise and excise taxes came in about $36 million below the budgeted estimate of $186.5 million. Sales tax collections, meanwhile, were about $5 million below estimates.

General fund tax collections for first five months of the state budget year are $186 million below expectations. The state projects that collections will fall between $147 million and $240 million short of expectations for the time the budget year ends on June 30.

Gov. Phil Bredesen is scheduled to present his spending proposals to the General Assembly later this month, but state Finance Commissioner Goetz warned that some of those recommendations may have to be revised depending on what happens in January.

‘We may have a better idea and will have to advise you that some of the things we are recommending are no longer feasible,’ he said.

January data will reflect crucial Christmas sales tax collections and quarterly reports from businesses, Goetz said.