Tennessee February 2025 revenues $16.9M more than estimated
Tennessee revenues exceeded budgeted estimates for the month of February with Finance and Administration Commissioner Jim Bryson reporting total February tax revenues were $1.37 billion, $16.9 million more than the budgeted estimate and $45.3 million more than February 2024.
The total tax growth rate for the month was 3.42%. General fund revenues were $27.2 million more than the February estimate and the four other funds that share in state tax revenues were $10.3 million less than the estimates.
On an accrual basis, February is the seventh month in the 2024-2025 fiscal year.
"February’s tax collections remain on track with our estimates," Bryson said. “Sales tax receipts, reflecting January's taxable sales activity, were notably strong. While corporate tax revenues fell short of expectations, all other tax categories collectively exceeded our projections for the month.
“As we move into the latter half of the fiscal year, we will continue to closely monitor the economy and consumer demand to ensure we meet our monthly budget targets."
On a year-to-date basis, August through February, total tax revenues are 0.19% more than the budget estimate, or $22.8 million more than expectations. When compared to this same period last year, total tax revenues have increased by $52.2 million or 0.44%.
General fund revenues are 0.08% more than the year-to-date budgeted estimate, or $8.3 million greater. Likewise, year-to-date general fund collections compared to this same period last year have increased 0.92% or $89.6 million.
Individual tax performance compared to February 2025 Budgeted Estimates:
· Sales Taxes: Above estimate by 1.96% or $20.9 million
· Corporate Taxes (Franchise & Excise): Below estimate by 25.02% or $13.8 million
· Fuel Taxes: Below estimate by 4.04% or $4.0 million
· All other taxes: Above estimate by 10.24% or $13.9 million
Year-to-date performance compared to Budgeted Estimates:
· Sales Taxes: Above estimate by 1.48% or $124.8 million
· Corporate Taxes (Franchise & Excise): Below estimate by 11.13% or $179.3 million
· Fuel Taxes: Below estimate by 0.13% or $1.0 million
· All other taxes: Above estimate by 7.40% or $78.2 million
Individual tax performance compared to February 2024:
· Sales Taxes: Up 5.73% or $58.8 million
· Corporate Taxes (Franchise & Excise): Down 33.58% or $21.0 million
· Fuel Taxes: Up 3.26% or $3.0 million
· All other taxes: Up 3.09% or $4.5 million
Year-to-date tax performance compared to August 2023 through February 2024:
· Sales Taxes: Up 5.61% or $453.2 million
· Corporate Taxes (Franchise & Excise): Down 23.48% or $439.3 million
· Fuel Taxes: Up 1.01% or $7.6 million
· All other taxes: Up 2.79% or $30.8 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% to negative 1.34% for total taxes and negative 2.50% to negative 1.91% 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.