NASHVILLE, Tenn. – Tennessee revenues exceeded budgeted estimates for the month of September. Finance and Administration Commissioner Butch Eley today reported that September total tax revenues were $1.9 billion, which is $321.5 million more than September of last year and $378.1 million more than the budgeted estimate. The total growth rate for the month was 20.28 percent.
“September revenues outpaced budgeted estimates because of strong tax remittances from sales and use taxes, corporate franchise and excise taxes and privilege taxes,” Eley said. “Sales tax receipts, reflecting August retail sales activity, benefitted from back-to-school shopping and continued stimulus effects while franchise and excise taxes, though volatile, appear to reflect growth in corporate profits reported nationally. The sizable privilege tax growth from realty transfer taxes continue to reflect the dynamic real estate market and population growth that is occurring within the state.
“While we are pleased with the strong start, we need to be mindful that there are another ten months remaining in the fiscal year. As such, we will continue to closely monitor economic trends and our state spending.”
On an accrual basis, September is the second month in the 2021-2022 fiscal year.
For September, general fund revenues exceeded the budgeted estimates in the amount of $362.8 million, and the four other funds that share in state tax revenues were more than the budgeted estimate by $15.3 million.
Sales tax revenues were $144.9 million more than the estimate for September. The September growth rate was 20.40 percent. Year-to-date revenues are 21.08 percent more than this time last year. Remote sales and marketplace facilitator laws contributed $55.4 million to sales tax receipts in the month of September. For the first two months of the fiscal year, online sales tax revenues represent 31 percent of all sales tax growth to the state.
Franchise and excise taxes combined were $213.6 million more than the September budgeted estimate of $420.4 million. The September growth rate was 26.92 percent, and the year-to-date corporate tax growth rate is 34.45 percent.
Gasoline and motor fuel revenues for September increased by 9.83 percent and were $4.5 million more than the budgeted estimate of $107.7 million.
Motor Vehicle Registration revenues were $0.6 million more than the September estimate, and on a year-to-date basis have exceed estimates by $0.7 million.
Tobacco tax revenues for the month were $0.4 million more than the budgeted estimate of $20.4 million. The growth rate for September was negative 17.77%.
Privilege tax revenues were $15.5 million more than the budgeted estimate of $34.2 million, and on a year-to-date basis have exceed estimates by $15.4 million.
Business Tax receipts were $0.4 million less than the budgeted estimate for September. For two months revenues are $3.3 million less than the budgeted estimate.
Hall income tax revenues for September were $0.1 million more than the budgeted estimate.
Mixed drink, or liquor-by-the-drink, taxes were $1.4 million more than the September estimate, and on a year-to-date basis, revenues are $3.7 million more than the estimate.
All other taxes were less than estimates by a net of $2.5 million.
Year-to date revenues for the first two months of the fiscal year were $646 million more than the budgeted estimates. The general fund exceeded estimates by $610.7 million and the four other funds that share in state tax revenues exceeded estimates by $35.3 million.
The budgeted revenue estimates for 2021-2022 are based on the State Funding Board’s consensus recommendation of November 24, 2020 and adopted by the first session of the 112th General Assembly in April 2021. Also incorporated in the estimates are any changes in revenue enacted during the 2021 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.
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