State Revenue Collections Remain Sluggish In July

Wednesday 13 August 2008Tennessee’s sales tax collections for the month of July continue to lag behind budgeted estimates. Overall July revenues were nearly 50-million dollars less than the state had budgeted. Sales tax collections were off by 32-point-two-million dollars. Finance Commissioner Dave Goetz notes that the sales tax is the backbone of Tennessee’s economy. He adds that the growth rate has been negative for five of the past seven months. Goetz says the state prepared in May for an anticipated dip in collections and has been spending money conservatively since. July is the 12th month of the state’s fiscal year on an accounting basis. State revenues for the past year came up short by 236-point-seven-million dollars.