Tobacco taxes only revenue item below budget projections
NASHVILLE – Tennessee Department of Finance and Administration Commissioner Stuart McWhorter today announced that Tennessee tax revenues exceeded budgeted estimates in February. February revenues totaled just above one billion dollars, which is $64.8 million more than the state received in February 2019 and $63 million more than the budgeted estimate. The growth rate for February was 6.79%.
“As expected, revenue growth for the month of February exceeded budget projections,” McWhorter said. “Sales tax receipts, reflecting January consumer activity, outpaced budgeted expectations as did all other taxes combined.
“It should be noted that the administration is closely monitoring current and future economic activity due to the COVID-19 outbreak. We fully expect to realize an impact in the coming months. However, at this time, year-to-date tax revenue growth continues to outpace budgeted estimates which should allow the state to mitigate any future decrease to monthly collections.”
On an accrual basis, February is the seventh month in the 2019-2020 fiscal year.
General fund revenues exceeded the budgeted estimates in the amount of $32.2 million while the four other funds that share in state tax revenues were $30.8 million less than the estimates.
Sales tax revenues were $42.2 million more than the estimate for February and 7.58% more than February 2019. For seven months, revenues are $237.7 million higher than estimated. The year-to-date growth rate for seven months was 6.76%.
Franchise and excise tax revenues combined were $4 million more than the budgeted estimate in February. However, the growth rate compared to February 2019 was negative 0.97%. For seven months, revenues are $202 million more than the estimate and the year-to-date growth rate is 17.31%.
Gasoline and motor fuel revenues for February increased by 8.47% compared to February 2019 and were $4.2 million more than the budgeted estimate of $92.1 million. For seven months revenues have exceeded estimates by $34 million.
Motor vehicle registration revenues were $2.5 million more than the February estimate, and on a year-to-date basis they are $10.5 million more than estimates.
Tobacco taxes were $2 million more than the February budgeted estimate of $18.2 million. For seven months, they are $0.9 million less than the budgeted estimate.
Privilege taxes were $5.7 million more than the February estimate, and on a year-to-date basis, August through February, revenues are $34.5 million more than the estimate.
Business taxes were $0.5 million more than the February estimate. For seven months, revenues are $7.9 million more than the budgeted estimate.
Hall income tax revenues for the month were $0.4 million more than the budgeted estimate. On a year-to-date basis, income tax revenues are $4.7 million more than the estimate.
All other tax receipts exceeded estimates by a net of $1.5 million.
Year-to-date revenues for seven months were $543.6 million more than the budgeted estimate. The general fund recorded $430.2 million in excess of the budgeted estimates and the four other funds $113.4 million.
The budgeted revenue estimates for 2019-2020 are based on the State Funding Board’s consensus recommendation of Nov. 26, 2018 and adopted by the second session of the 111th General Assembly in April 2019. Also incorporated in the estimates are any changes in revenue enacted during the 2019 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.