Franchise and excise taxes almost double budgeted amount
NASHVILLE– Tennessee Department of Finance and Administration Commissioner Stuart McWhorter announced today that overall November state revenues were $1.1 billion, which is 7.94% more than November 2018 and $78.3 million more than the budgeted estimate.
“November sales tax receipts continue to reflect strong consumer activity within the state, and corporate tax revenues greatly outperformed budgeted expectations for the month,” McWhorter said. “Although November is typically a small month for corporate tax receipts, we are pleasantly surprised by this month’s growth. Including the current month, Tennessee has realized 11 consecutive months of total tax growth for the state.
“While we continue to see strong revenue growth, we will closely watch revenue trends and adjust spending if growth weakens,” McWhorter added.
On an accrual basis, November is the fourth month in the 2019-2020 fiscal year.
General fund revenues for November were $70 million more than the budgeted estimate, and the four other funds that share in state tax revenues were $8.3 more than the budgeted estimate.
Sales tax revenues were $37.2 million more than the estimate for November. The November growth rate was 4.61%. The year-to-date growth rate is 5.88%.
Franchise and excise taxes combined revenues for November were $67.9 million, which is $33.3 million more than the budgeted estimate of $34.6 million. The growth rate for November was 123.72%. The year-to-date growth rate is 23.24%.
Gasoline and motor fuel revenues increased 6.68% over November 2018 and they were $1.2 million more than the budgeted estimate of $103.2 million for the current month.
Motor Vehicle Registration revenue receipts increased by 10.84% and were $2.2 million more than the November estimate.
Hall income tax revenues for November were $0.1 million less than the budgeted estimate.
Tobacco tax revenues for the month were $2.9 million less than the budgeted estimate.
Privilege tax revenues were $6.1 million more than the budgeted estimate of $26.4 million.
Business tax revenues were $1.2 million more than the November estimate.
All other tax revenues exceeded estimates by a net of $0.1 million.
Year-to-date revenues for four months were $295.8 million more than the budgeted estimate. The general fund exceeded estimates by $242.2 million and the four other funds that share in state tax revenues exceeded estimates by $53.6 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 first 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.