Tenn. budget shortfall reaches almost $500M - WMC Action News 5 - Memphis, Tennessee

Tenn. budget shortfall reaches almost $500M

NASHVILLE, Tenn. (AP) - Tennessee's tax collections have fallen nearly a half-billion dollars short of expectations through the first six months of the budget year.

The state Finance Department says general fund revenues came in at nearly $103 million below projections in December. That brought the shortfall for the first half of the fiscal year to $482 million.

Sales taxes, which account for two out of every three tax dollars collected in Tennessee, have missed projections by $281 million since July.

Waning corporate tax collections have been responsible for most of the rest of the shortfall. Franchise and excise taxes have fallen $162 million short of expectations over the first six months of the budget year.

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