NASHVILLE, Tenn. – Tennessee revenues exceeded budgeted estimates for September, which is the second month of the state’s fiscal year. Finance and Administration Commissioner Butch Eley today reported that September revenues were $1.6 billion, which is $23.2 million more than September 2019, and $197.5 million more than the budgeted estimate. The growth rate for September was 1.48%.
“September tax revenue growth was slightly positive compared to the same month last year,” Eley said. “While September sales tax collections, which reflect consumer activity in August, exceeded estimates by nine percent, we must remember that Tennesseans have continued to receive considerable stimulus funding, which will decline over time. Corporate tax receipts, reported as franchise and excise taxes, also remain flat compared to 2019; however, gasoline and motor fuel taxes have declined by 5.6 percent, indicating the decline in demand for business and leisure travel.
“Overall, we are pleased that tax revenues are performing better than estimated, but we do remain cautiously optimistic, planning for the worst but hoping for the best, as we continue to monitor the pandemic’s effect on our economy and our state’s finances.”
On an accrual basis, September is the second month in the 2020-2021 fiscal year.
For September, general fund revenues exceeded the budgeted estimates in the amount of $199.4 million, and the four other funds that share in state tax revenues were less than the budgeted estimate by $1.9 million.
Sales tax revenues were $71.2 million more than the estimate for September. The September growth rate was positive 1.56%. Year-to-date revenues are 2.70% more than this time last year.
Franchise and excise taxes combined were $119.3 million more than the September budgeted estimate of $380.3 million. The September growth rate was 2.10%, and on a year-to-date basis 1.62%.
Gasoline and motor fuel revenues for September decreased by 5.61% and were $5.5 million less than the budgeted estimate of $108.2 million.
Motor Vehicle Registration revenues were $0.1 million more than the September estimate, and on a year-to-date basis have exceed estimates by $4.1 million.
Tobacco tax revenues for the month were $6 million more than the budgeted estimate of $19.4 million. The growth rate for September was 19.01%.
Privilege tax revenues were $9 million more than the budgeted estimate of $31.6 million, and on a year-to-date basis have exceed estimates by $11.1 million.
Business Tax receipts were $1.1 million more than the budgeted estimate for September. For two months revenues are $0.1 million more than the budgeted estimate.
Hall income tax revenues for September were $0.4 million less than the budgeted estimate.
Mixed drink, or liquor-by-the-drink, taxes were $3.6 million less than the September estimate, and on a year-to-date basis, revenues are $7.6 million less than the estimate.
All other taxes were greater than estimates by a net of $0.3 million.
Year-to date revenues for two months were $312.5 million more than the budgeted estimates. The general fund exceeded estimates by $308 million and the four other funds that share in state tax revenues exceeded estimates by $4.5 million.
The budgeted revenue estimates for 2020-2021 are based on the State Funding Board’s consensus recommendation of November 26, 2019 and adopted by the second session of the 111th General Assembly in June 2020. Also incorporated in the estimates are any changes in revenue enacted during the 2020 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.