Tennessee July revenues $119.3M above estimates
Tennessee Department of Finance and Administration Commissioner Jim Bryson announced that revenues for July were $1.7 billion, which is $51.2 million more than July of last year.
The total growth rate for the month was 3.10%.
“July total tax revenues grew more than expected in the final month of the fiscal year,” Bryson said. “Sales tax receipts, motor vehicle registration fees, fuel tax, gross receipts taxes, and franchise and excise tax collections all contributed to the monthly revenue gains.
Due to healthy collections in the final quarter, the state will meet the revised budget estimate for the 2023-2024 fiscal year.
Total taxes exceeded the forecast by $206.8 million, and general fund tax collections were $119.3 million higher than the November estimate.”
On an accrual basis, July is the final month in the 2023-2024 fiscal year. Final reported revenues will be subject to accrual accounting adjustments that may increase or decrease the recorded cash amounts on an audited basis.
General fund revenues were less than the original budgeted estimates set on July 2023 in the amount of $35.3 million and the four other funds that share in state tax revenues were $2.5 million less than the original estimates.
Sales tax revenues were $48.4 million less than the estimate for July but 0.88% more than July 2023. For the year, revenues were $187.3 million less than estimated with an annual growth rate of 1.62%.
Franchise and excise tax revenues combined were $1.4 million greater than the monthly budget estimate and the growth rate compared to July 2023 was 7.47%. However, for the year, revenues were $326.3 million less than the original estimate and the year-to-date growth rate was negative 5.55%.
Gasoline and motor fuel revenues for July increased by 6.02% compared to July 2023 and were $1.5 million more than the budgeted estimate of $111.7 million. For the year, revenues were more than estimates by $8.3 million.
Motor vehicle registration revenues were $0.1 million less than the July estimate, and on a year-to-date basis, revenues were $6 million more than the estimate.
Tobacco tax revenues were $0.8 million less than the July budgeted estimate of $18.6 million. For the year, they were $23.7 million less than the budgeted estimate.
Privilege tax revenues were $16.7 million less than the July estimate, and on a year-to-date basis, August through July, revenues were $133.7 million less than the estimate.
Gross receipts taxes or bottlers tax revenues were $20.4 million more than the July estimate, and on a year-to-date basis were $31.7 million more than the budgeted estimate.
Business tax revenues were $5.3 million more than the July estimate of $13.8 million. For the year, revenues were $31.8 million more than the budgeted estimate.
Mixed drink, or Liquor-by-the-drink, taxes were $1.1 million more than the July estimate. For the year, revenues were $3.5 million more than the budgeted estimate.
All other tax revenues were less than estimates by a net of $1.5 million.
For the year, revenues were $593 million less than the original budgeted estimate. The general fund recorded $600.9 million less than the budgeted estimate and the four other funds were $7.9 million more than estimated.
The budgeted revenue estimates for 2023-2024 are based upon the State Funding Board’s consensus recommendation from November 28, 2022, and adopted by the first session of the 113th General Assembly in April 2023. Also incorporated in the estimates are any changes in revenue enacted during the 2023 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.
On November 6, 2023, the State Funding Board met again to hear updated revenue projections from various state economists. Following this meeting, on November 29, 2023, the board decided to adopt revised revenue growth ranges for the current fiscal year. The recurring growth ranges adopted include a low of negative 0.69% to a high of negative 0.19% for total taxes and a recurring range low of negative 0.50% to a high of 0.00% for general fund taxes.
On April 18, 2024, in the second session of the 113th General Assembly, the Legislature passed House Bill 2973/Senate Bill 2942, which included the Funding Board’s revised revenue ranges for the current year. Upon passage, revenue estimates were revised lowered by $798.4 million for total funds and $718.8 million for general fund revenue. The appropriations bill, Public Chapter 966, was signed by Governor Lee on May 15, 2024.