Tenn. corporate taxes fall $54M short in December
NASHVILLE, Tenn. (AP) - Tennessee business tax collections fell more than $54 million below projections in December, contributing to a more than $175 million shortfall through the first five months of the budget year.
Finance Commissioner Larry Martin in a release said this year's shorter-than-usual Christmas shopping season contributed to the state collecting $3 million less than expected in sales tax collections in December, which reflects economic activity in the previous month.
Sales tax collections, while sluggish, have grown at a rate of 3.3 percent compared with the first five months of last year. But collections of corporate franchise taxes on property values and excise taxes on income has fallen 14 percent below last year's levels.
Lawmakers returning into session next week will work on any needed revisions to the annual spending plan.