State November revenues at $1.5B
Tennessee revenue collections for November exceeded the budgeted estimate.
Department of Finance and Administration Commissioner Jim Bryson announced that overall November state revenues were $1.5 billion, which is 6.66% more than November 2021 and $156.8 million more than the budgeted estimate.
“Despite total revenues outperforming budgeted estimates, individual tax growth was mixed,” Bryson said. “Growth from sales and use taxes, reflecting October consumer spending, remains strong, but weakness in franchise and excise taxes, privilege taxes and motor vehicle registrations restrained this month’s growth. November is the month when corporate tax filers who have requested an extension reconcile their books relative to their actual tax obligation and in some cases, request a refund.
“Privilege tax collections continue to remain challenged due to high interest rates and motor vehicle registration payments are lower compared to this time last year due to the one-year registration waiver granted to individual Tennessee motorists. All other taxes taken together were above budgeted estimates for the month.
“While we are well ahead of our year-to-date budgeted estimates, we will continue to monitor economic activity and revenue trends to ensure fiscal stability.”
On an accrual basis, November is the fourth month in the 2022-2023 fiscal year.
General fund revenues for November were $138.7 million more than the budgeted estimate, and the four other funds that share in state tax revenues were $18.1 million more than the budgeted estimate.
Sales tax revenues were $126.6 million more than the estimate for November. The November growth rate was 10.05%. Year-to-date revenues are $479.7 million higher than estimated, and the growth rate is 10.54%.
Franchise and excise taxes combined revenues for November were $101.6 million or $20.6 million more than the November budgeted estimate. For four months, revenues are $224.5 million higher than estimated, and the growth rate is 15.44%.
Gasoline and motor fuel revenues increased 1.82% compared to last November and were $0.5 million more than the budgeted estimate of $106.4 million. Year-to-date revenues are $5.3 million less than estimated.
Motor Vehicle Registration revenue receipts decreased by 18.88% but were $3.2 million more than the November estimate. Year-to-date revenues are $12.4 million higher than estimated.
Tobacco tax revenues were $18.8 million or $0.1 million less than the budgeted estimate for the month.
Privilege tax revenues were $8.1 million less than the budgeted estimate of $44.5 million. For four months, revenues are $12.1 million less than estimated, and the growth rate is negative 9.74%.
Business tax revenues were $2.7 million more than the November estimate and year-to-date revenues are $13 million more than estimated.
Mixed drink, or liquor-by-the-drink, taxes were $6.6 million more than the November estimate, and on a year-to-date basis, revenues are $20.4 million more than the estimate.
All other tax revenues together were more than estimates by a net of $4.8 million.
Year-to-date revenues for four months were $742.7 million more than the budgeted estimate. The general fund exceeded estimates by $683.9 million and the four other funds that share in state tax revenues exceeded estimates by $58.8 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.