State August revenues more than $130M over estimates
Tennessee revenues were more than the budgeted estimates for the first month of the state’s fiscal year. Finance and Administration Commissioner Jim Bryson reported that August revenues were $1.5 billion, which is $100.6 million more than August 2021, and $130.5 million more than the budgeted estimates.
The growth rate for all taxes in August was 7.12 percent.
“Monthly tax revenue receipts were substantial for the first month of this fiscal year but were much lower than the 22.11 percent growth experienced in August of last year,” Bryson said. “Sales and use taxes, representing July taxable sales activity, were the largest contributor to monthly growth and fell in-line with the July national retail sales growth reported at 10.3 percent. There was a decline in motor vehicle registration fees compared to August of last year, due primarily to the newly implemented one-year registration renewal waiver for class A and class B drivers. Furthermore, a $1.7 million loss in privilege tax growth can be attributed to a reduction in realty and mortgage tax transactions due to rising interest rates.
“As state tax collections begin to moderate from last year’s extraordinary growth, we will continue to carefully monitor the economy and consumer demand to ensure we meet our monthly budgeted estimates.”
On an accrual basis, August is the first month in the 2022-2023 fiscal year.
General fund revenues were $117.2 million more than the August estimate. The four other funds that share in state tax revenues were $13.3 million more than the estimates.
Sales tax revenues were $118.4 million more than the estimate for August. The August growth rate was 10.01 percent.
Franchise and excise taxes combined were $11.3 million more than the budgeted estimate of $80.1 million, however the growth rate was negative 3.50 percent.
Gasoline and motor fuel revenues increased by 1.83 percent from August 2021 but were $0.3 million less than the budgeted estimate of $109.2 million.
Motor vehicle registration revenues were $0.6 million more than the August estimate of $19.9 million.
Tobacco tax revenues for the month were more than budgeted estimates by $2.4 million.
Privilege tax revenues for August were $5.9 million less than the month’s estimate of $50.3 million.
Business tax revenues were $5.7 million more than the August estimate of $6.6 million.
All other tax revenues were less than estimates by a net of $1.7 million.
The budgeted revenue estimates for 2022-2023 are based upon the State Funding Board’s consensus recommendation from November 23, 2021 and adopted by the second session of the 112th General Assembly in April 2022. Also incorporated in the estimates are any changes in revenue enacted during the 2022 session of the General Assembly. These estimates are available on the state’s website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.