Tennessee August revenues $1.3M over estimates
Tennessee Department of Finance and Administration Commissioner Jim Bryson announced that revenues were very near budgeted estimates for the first month of the state’s fiscal year.
August revenues were $1.548 billion, which is $1.3 million more than the monthly estimate and $36.3 million more than August 2023. The total growth rate for the month was 2.40%.
“August revenues performed as expected and were in line with forecasted estimates for the month,” Bryson said. “Sales tax receipts, reflecting sales tax activity from the month of July, indicates resilient consumer activity while corporate taxes were lower as a result of recent legislation reducing franchise tax liability. All other taxes were greater than the budgeted estimates for the month.
“We are cautiously optimistic at the start of the new fiscal year, and we will continue to carefully monitor economic activity and consumer demand to ensure we meet our monthly budgeted estimates.”
On an accrual basis, August is the first month in the 2024-2025 fiscal year.
General fund revenues were $6.5 million less than the August estimate, while the four other funds that share in state tax revenues were $7.8 million more than the estimates.
Individual tax performance against monthly budgeted estimates:
· Sales Taxes: Above estimate by 0.27% or $3.3 million.
· Corporate Taxes (Franchise & Excise): Below estimate by 32.54% or -$19.3 million.
· Fuel Taxes: Above estimate by 1.95% or $2.1 million.
· All other Taxes: Above estimate by 9.60% or $15.2 million.
Individual tax performance compared to this same time last year:
· Sales Taxes: Up 3.19% or $37.8 million.
· Corporate Taxes (Franchise & Excise): Down 22.67% or -$11.8 million.
· Fuel Taxes: Up 1.38% or $1.5 million.
· All other Taxes: Up 5.33% or $8.8 million.
The budgeted revenue estimates for 2024-2025 are based upon the State Funding Board’s consensus recommendation from November 29, 2023, and adopted by the second session of the 113th General Assembly in April 2024. Also incorporated in the estimates are any changes in revenue enacted during the 2024 session of the General Assembly. All monthly estimates are available on the state’s website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.