Tennessee April revenues $117.6M less than budgeted
Tennessee Department of Finance and Administration Commissioner Jim Bryson announced that revenues for April were $2.7 billion, which is $117.6 million less than budgeted estimates and $316.9 million less than April of last year.
General fund revenues were $114.0 million less than the April estimate, and the four other funds that share in state tax revenues were $3.6 million less than the estimates.
On an accrual basis, April is the ninth month in the 2024-2025 fiscal year.
“Though tax revenues for April were lower than budgeted estimates, we remain cautiously optimistic about improvements for the three remaining months of collections,” said Bryson. “We are encouraged that sales tax receipts were close to targeted figures and that the state’s business and privilege taxes continue to show promising gains.”
“As we continue to closely monitor state finances, we remain committed to maintaining a balanced budget that serves Tennesseans well.”
On a year-to-date basis, August through April, total tax revenues are 0.79 percent less than the budget estimate, or $128.1 million less than expectations. When compared to this same period last year, total tax revenues have decreased by $333.9 million or 2.02 percent.
General fund revenues are 1.02 percent less than the year-to-date budgeted estimate, or $141.0 million. Likewise, year-to-date general fund collections compared to this same period last year have decreased 1.95 percent or $271.9 million.
Individual tax performance compared to April 2025 Budgeted Estimates:
· Sales Taxes: Below estimate by 0.02% or $0.3 million
· Corporate Taxes (Franchise & Excise): Below estimate by 13.19% or $153.2 million
· Fuel Taxes: Below estimate by 4.58% or $5.1 million
· All other taxes: Above estimate by 13.85% or $41.0 million
Year-to-date performance compared to Budgeted Estimates:
· Sales Taxes: Above estimate by 0.79% or $84.9 million
· Corporate Taxes (Franchise & Excise): Below estimate by 11.00% or $335.2 million
· Fuel Taxes: Above estimate by 0.31% or $3.0 million
· All other taxes: Above estimate by 7.88% or $119.3 million
Individual tax performance compared to April 2024:
· Sales Taxes: Up 3.61% or $44.2 million
· Corporate Taxes (Franchise & Excise): Down 27.13% or $375.5 million
· Fuel Taxes: Down 4.05% or $4.5 million
· All other taxes: Up 5.96% or $19.0 million
Year-to-date tax performance compared to August 2023 through April 2024:
· Sales Taxes: Up 4.49% or $467.4 million
· Corporate Taxes (Franchise & Excise): Down 24.05% or $858.9 million
· Fuel Taxes: Up 0.81% or $7.7 million
· All other taxes: Up 3.15% or $49.8 million
The budgeted revenue estimates for 2024–2025 are based on the State Funding Board’s consensus recommendation from November 29, 2023, which was adopted by the second session of the 113th General Assembly in April 2024. These estimates also incorporate any revenue changes enacted during the 2024 General Assembly session. Monthly estimates for fiscal year 2024–2025 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 25, 2024, the State Funding Board met once again and recommended updated revenue projections for the 2024–2025 fiscal year. The Board adopted revised revenue growth ranges of negative 1.68 percent to negative 1.34 percent for total taxes and negative 2.50 percent to negative 1.91 percent for general fund revenues. The Board’s projected upper limit and the growth outlined in Governor Lee’s budget proposal for the first session of the 114th General Assembly reflect no changes to the current Department of Revenue’s state tax revenue estimates for the 2024–2025 fiscal year.