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Tennessee September revenues $277.2M above estimates

Tennessee Finance and Administration Commissioner Jim Bryson reported that total September tax revenues were $2.1 billion, which is $243.3 million more than September of last year and $277.2 million more than the budgeted estimate.

The total growth rate for the month was 12.76%.

“September sales tax receipts and corporate tax revenues outperformed expectations and led all tax growth for the month,” Byson said. “However, all other revenues combined experienced negative growth of 2.34% compared to September 2021. While we are encouraged to see early monthly revenue receipts outpacing our estimates, we must continue to closely monitor our state’s finances amid an uncertain economic environment.” 

On an accrual basis, September is the second month in the 2022-2023 fiscal year.

For September, general fund revenues exceeded the budgeted estimates in the amount of $266.3 million, and the four other funds that share in state tax revenues were more than the budgeted estimate by $10.9 million.

Sales tax revenues were $105.9 million more than the estimate for September. The September growth rate was 10.86%. Year-to-date revenues are 10.43% more than this time last year.

Franchise and excise taxes combined were $163.9 million more than the September budgeted estimate of $611.7 million. The September growth rate was 22.33%, and the year-to-date corporate tax growth rate is 18.98%.

Gasoline and motor fuel revenues for September decreased by 5.16% and were $5.8 million less than the budgeted estimate of $112.3 million. 

Motor Vehicle Registration revenues were $7.1 million more than the September estimate, and on a year-to-date basis have exceed estimates by $7.6 million.

Tobacco tax revenues for the month were $3.7 million less than the budgeted estimate of $21 million. For two months, revenues are $1.3 million less than the budgeted estimate.

Privilege tax revenues were $0.9 million more than the budgeted estimate of $45.9 million. However, on a year-to-date basis, privilege tax receipts are less than estimate by $5.1 million.

Business tax receipts were $0.7 million more than the budgeted estimate for September. For two months, revenues are $6.4 million more than the budgeted estimate.

Mixed drink, or liquor-by-the-drink, taxes were $6 million more than the September estimate, and on a year-to-date basis, revenues are $6.6 million more than the estimate.

All other taxes were more than estimates by a net of $2.2 million.

Year-to date revenues for the first two months of the fiscal year were $407.7 million more than the budgeted estimates. The general fund exceeded estimates by $383.5 million and the four other funds that share in state tax revenues exceeded estimates by $24.2 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.