May Revenues
NASHVILLE, TN – Tennessee revenues exceeded budgeted estimates for the month of May. Finance and Administration Commissioner Jim Bryson today reported that total May tax revenues were $1.7 billion, $36 million more than the budgeted estimate and $56.4 million more than May 2024. The total tax growth rate for the month was 3.43 percent.
General fund revenues were $40.1 million more than the May estimate, and the four other funds that share in state tax revenues were $4.1 million less than the estimates.
On an accrual basis, May is the tenth month in the 2024-2025 fiscal year.
"May’s total tax receipts exceeded our budgeted expectations, driven primarily by strong sales tax collections,” Bryson said. “Corporate tax revenues—specifically franchise and excise taxes—also outperformed projections. We will exercise continued diligence in monitoring revenues and expenditures to secure a balanced financial close to the fiscal year.”
On a year-to-date basis, August through May, total tax revenues are 0.51 percent less than the budget estimate, or $92.1 million less than expectations. When compared to this same period last year, total tax revenues have decreased by $277.5 million or 1.53 percent.
General fund revenues are 0.66 percent less than the year-to-date budgeted estimate, or $100.9 million. Likewise, year-to-date general fund collections compared to this same period last year have decreased 1.32 percent or $202.2 million.
Individual tax performance compared to May 2025 Budgeted Estimates:
· Sales Taxes: Above estimate by 2.55% or $31.3 million
· Corporate Taxes (Franchise & Excise): Above estimate by 13.33% or $12.9 million
· Fuel Taxes: Below estimate by 5.35% or $5.9 million
· All other taxes: Below estimate by 1.00% or $2.3 million
Year-to-date performance compared to Budgeted Estimates:
· Sales Taxes: Above estimate by 0.97% or $116.2 million
· Corporate Taxes (Franchise & Excise): Below estimate by 10.25% or $322.3 million
· Fuel Taxes: Below estimate by 0.28% or $3.0 million
· All other taxes: Above estimate by 6.70% or $117.0 million
Individual tax performance compared to May 2024:
· Sales Taxes: Up 5.11% or $61.1 million
· Corporate Taxes (Franchise & Excise): Up 3.77% or $4.0 million
· Fuel Taxes: Down 1.72% or $1.8 million
· All other taxes: Down 2.93% or $6.9 million
Year-to-date tax performance compared to August 2023 through May 2024:
· Sales Taxes: Up 4.56% or $528.6 million
· Corporate Taxes (Franchise & Excise): Down 23.24% or $854.9 million
· Fuel Taxes: Up 0.56% or $5.9 million
· All other taxes: Up 2.36% or $42.9 million
The budgeted revenue estimates for 2024–2025 are based on the State Funding Board’s consensus recommendation from November 29, 2023, which was adopted by the second session of the 113th General Assembly in May 2024. These estimates also incorporate any revenue changes enacted during the 2024 General Assembly session. Monthly estimates for fiscal year 2024–2025 are available on the state’s website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.
On November 25, 2024, the State Funding Board met once again and recommended updated revenue projections for the 2024–2025 fiscal year. The Board adopted revised revenue growth ranges of negative 1.68 percent to negative 1.34 percent for total taxes and negative 2.50 percent to negative 1.91 percent for general fund revenues. The Board’s projected upper limit and the growth outlined in Governor Lee’s budget proposal for the first session of the 114th General Assembly reflect no changes to the current Department of Revenue’s state tax revenue estimates for the 2024–2025 fiscal year.
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