On an accrual basis, January is the sixth month in the 2022-2023 fiscal year
Cookeville – Tennessee Department of Finance and Administration Commissioner Jim Bryson today announced that Jan. state tax revenues exceeded budgeted estimates. Revenues for Jan. totaled $1.9B, which is $212.9M more than budgeted and 6.25% greater than revenues received in Jan. 2022.
“Second quarter total tax growth slowed to 5.89% and was lower than the 9.94% growth the state experienced for the first quarter of the fiscal year,” Bryson said. “We are very mindful that economic activity appears to be moderating from early elevated levels. Jan. sales tax receipts, reflecting consumer holiday spending in Dec., followed reports of lower sales trends nationally – the lowest growth rate since Sept. 2020. On a positive note, state corporate tax revenues, or franchise and excise taxes, and mixed drink taxes outperformed expectations. Still, rising interest rates have caused sharp declines in realty transfer and realty mortgage tax collections reported within privilege tax receipts. All other monthly taxes combined declined when compared to last year.
“While we are pleased with the strong revenue growth seen in the first half of this fiscal year, we remain cautious, closely monitoring economic conditions and revenue trends to ensure fiscal stability.”
On an accrual basis, Jan. is the sixth month in the 2022-2023 fiscal year.
General fund revenues were greater than the budgeted estimates in the amount of $197.9M while the four other funds that share in state tax revenues were $15M more than the estimates.
Sales tax revenues were $131.4M more than the estimate for Jan. and the growth rate was 5.51%. For six months, revenues are $730M higher than estimated. The year-to-date growth rate for six months is 8.75%.
Franchise and excise tax revenues were $78.6M more than the Jan. budgeted estimate. The growth rate compared to Jan. 2022 was 23.18%. Year-to-date franchise and excise tax revenues are 14.68% higher than this same time last year and $394.8M more than estimated.
Gasoline and motor fuel revenues decreased by 2.15% compared to Jan. 2022 and were $3.2M less than the budgeted estimate of $110.2M. For six months, revenues are less than estimates by $6.5M.
Motor vehicle registration revenues were $4.1M more than the Jan. estimate and on a year-to-date basis exceed estimates by $19.7M.
Tobacco tax revenues were $1.5M less than the budgeted estimate of $16.3M, and for six months are $6.9M less than the budgeted estimate.
Privilege tax revenues were $9.2M less than the Jan. estimate and on a year-to-date basis, Aug. through Jan., revenues are $26M less than the estimate.
Business tax revenues were $2M more than the Jan. estimate. For six months revenues are $15.5M more than the budgeted estimate.
Mixed drink or liquor-by-the-drink, taxes were $6.2M more than the Jan. estimate and on a year-to-date basis, revenues are $32.2M more than the budgeted estimate.
All other taxes were more than estimates by a net of $4.5M.
Year-to-date revenues for six months were $1.2B more than the budgeted estimate. The general fund recorded $1.1B in revenues more than estimates, and the four other funds totaled $92M more than year-to-date estimates.
The budgeted revenue estimates for 2022-2023 are based upon the State Funding Board’s consensus recommendation from Nov. 23, 2021 and adopted by the second session of the 112th General Assembly in April 2022. Also incorporated in the estimates are any changes in revenue enacted during the 2022 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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