Tennessee November revenues $129.8M less than budgeted
Tennessee Department of Finance and Administration Commissioner Jim Bryson announced that revenues for November were $1.35 billion, which is $72.2 million less than November of last year and $129.8 million less than the budgeted estimate.
General fund revenues were $137.3 million less than the November estimate, but the four other funds that share in state tax revenues were $7.5 million more than the estimates.
On an accrual basis, November is the fourth month in the 2024-2025 fiscal year.
“November revenues fell below our forecasted estimates due to weak corporate tax receipts,” Bryson said. “Corporate tax revenues, specifically franchise and excise taxes, experienced a decline due to refunds issued to calendar-year corporate tax filers. However, sales tax revenues, which reflect consumer activity from October, remained strong. Adjusting for last year's forgone revenue, sales tax collections grew by 3.9 percent compared to November 2023. All other state tax categories combined grew by nearly 5 percent.
“Although November’s revenue numbers were below our budgeted estimates, we are encouraged by some positive trends and will continue to monitor state spending and ongoing economic activity.”
On a year-to-date basis, August through November, total tax revenues are 0.86 percent less than the budget estimate, or $57.4 million below expectations. When compared to this same period last year, total tax revenues have grown 0.09 percent or $5.7 million.
General fund revenues are 1.38 percent less than the year-to-date budgeted estimate, or $75.6 million lower. Likewise, general fund collections compared to this same period last year have increased by 0.27 percent or $14.6 million.
Individual tax performance compared to November 2024 Budgeted Estimates:
· Sales Taxes: Above estimate by 4.51% or $53.4 million
· Corporate Taxes (Franchise & Excise): Below estimate by 417.28% or $195.2 million
· Fuel Taxes: Below estimate by 1.44% or $1.5 million
· All other taxes: Above estimate by 9.23% or $13.5 million
Year-to-date performance compared to Budgeted Estimates:
· Sales Taxes: Above estimate by 1.83% or $87.4 million
· Corporate Taxes (Franchise & Excise): Below estimate by 22.86% or $188.8 million
· Fuel Taxes: Above estimate by 0.39% or $1.7 million
· All other taxes: Above estimate by 6.79% or $42.3 million
Individual tax performance compared to November 2023:
· Sales Taxes: Up 9.45% or $106.7 million
· Corporate Taxes (Franchise & Excise): Down 443.24% or $191.6 million
· Fuel Taxes: Down 0.12% or $0.1 million
· All other taxes: Up 8.76% or $12.8 million
Individual tax performance compared to August through November 2023:
· Sales Taxes: Up 6.28% or $287 million
· Corporate Taxes (Franchise & Excise): Down 31.89% or $298.2 million
· Fuel Taxes: Up 0.26% or $1.1 million
· All other taxes: Up 2.42% or $15.7 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.