October Revenues
NASHVILLE, Tenn. – Tennessee revenues for October slightly exceeded revenues for the same time last year. Finance and Administration Commissioner Larry Martin today reported that revenues for October were $983.3 million, which is 1.29% more than October 2015, and $44.0 million in excess of the budgeted estimate.
“The sales tax, which is one of Tennessee’s best economic indicators, recorded relatively moderate growth for October,” Martin said. “Corporate revenues - franchise and excise taxes - recorded negative growth for the month. However, this is a normal occurrence in the state’s business cycle for October, as this is when some corporate filers who may have over paid their tax liability in previous months are allowed to request a refund. Adjustments were consistent with our expectations.”
On an accrual basis, October is the third month in the 2016-2017 fiscal year.
General fund revenues for October were $44.0 million more than the budgeted estimate, and the four other funds that share in state tax revenues were equal to the budgeted estimates.
Sales tax revenues were $37.5 million more than the estimate for October. The October growth rate was 4.52%. The year-to-date growth rate was 3.72%.
Franchise and excise combined revenues for October were $66.2 million which is $6.8 million more than the budgeted estimate of $59.4 million. The growth rate for October was negative 14.42%. The year-to-date growth rate was 14.04%.
Gasoline and motor fuel revenues decreased by 4.79% and they were $1.4 million less than the budgeted estimate of $73.2 million.
Motor Vehicle Registration revenues increased by 3.99% and they were $1.7 million more than the October estimate.
Tobacco tax revenues for the month were $0.2 million in excess of the budgeted estimate.
Privilege tax revenues were $2.0 million more than the budgeted estimate of $28.8 million.
Inheritance and Estate taxes were $1.7 million less than the October estimate.
Business tax revenues were $1.6 million less than the October estimate.
Hall income taxes were $0.3 million less than the October estimate.
All other tax revenues were more than estimates by a net of $0.8 million.
Year-to-date revenues for three months were $198.6 million more than the budgeted estimate. The general fund was over estimates by $183.9 million and the four other funds that share in state tax revenues exceeded estimates by $14.7 million.
The budgeted revenue estimates for 2016-2017 are based on the State Funding Board’s consensus recommendation of November 23, 2015 and adopted by the second session of the 109th General Assembly in April 2016. Also incorporated in the estimates are any changes in revenue enacted during the 2016 session of the General Assembly. These estimates are available on the state’s website at http://www.tn.gov/finance/article/fa-budget-rev.