TN Sees Sales Tax Growth For 3rd Month

NASHVILLE, Tenn. - Tennessee revenue collections have fallen short of expectations, but the state's sales tax rate has shown a third consecutive month of growth.

General fund collections, which reflect economic activity in the previous month, missed projections by $9.3 million in June.

Finance Commissioner Dave Goetz noted in a release Tuesday that sales taxes -- which account for two out of every three tax dollars collected by the state -- grew by 0.7 percent despite the record flooding that occurred in May.

Corporate franchise and excise taxes, meanwhile, came in at $21 million more than projected.

For the first eleven months of the budget year, the general fund fell $225 million short of original estimates. The new budget year began July 1.