NASHVILLE, Tenn. – Tennessee tax revenue exceeded budgeted estimates in April. Department of Finance and Administration Commissioner Larry Martin today announced that overall April revenues were $1.9 billion, which is $148.9 million more than the state budgeted.
“Total reported revenues in April reflect significant improvement over this time last year and were driven primarily by franchise and excise payments, sales tax receipts and business tax revenues,” Martin said. “The Hall income tax posted a significant reduction from receipts received in April 2016 and was much less than budgeted expectations. All other tax revenues, taken as a group, were more than the April estimates.
“While revenue growth recovered from a sluggish March, we will continue to watch the performance of our two larges sources of revenue: sales taxes and franchise and excise taxes.”
On an accrual basis, April is the ninth month in the 2016-2017 fiscal year.
General fund revenues were more than the budgeted estimates in the amount of $159.0 million while the four other funds that share in state tax revenues were $10.1 million less than the estimates.
Sales taxes were $34.3 million more than the estimate for April and were 4.03% more than April 2016. April revenues reflect retail business activity that occurred in March. For nine months revenues are $204.9 million higher than estimated. The year-to-date growth rate for nine months was 2.98%.
Franchise and excise taxes combined were $140.8 million higher than the budgeted estimate in April, and the growth rate over April 2016 was positive 17.17%. For nine months revenues are $387.0 million more than the estimate and the year-to-date growth rate is 14.24%. However, adjusting for one-time payments received in the current year the underlying growth rate is positive 3.79%.
Gasoline and motor fuel revenues for April decreased by 3.56% compared to April 2016 but they were $3.8 million more than the budgeted estimate of $73.9 million. For nine months revenues have exceeded estimates by $35.4 million.
Tobacco taxes were $1.6 million less than the April budgeted estimate of $23.1 million. For nine months they are $3.6 million less than the budgeted estimate.
Inheritance and estate taxes were $1.1 million less than the April estimate. On a year-to-date basis revenues for nine months are $2.3 million more than the budgeted estimate.
Hall income tax revenues for April were $38.1 million less than the budgeted estimate. For nine months revenues are $41.4 million less than the budgeted estimate.
Privilege taxes were $0.1 million more than the April estimate and on a year-to-date basis, August through April, revenues are $6.4 million more than the estimate.
Business taxes were $11.2 million more than the April estimate. For nine months revenues are $18.9 million more than the budgeted estimate.
All other taxes were less than the estimates by a net of $0.5 million.
Year-to-date revenues for nine months were $624.5 million more than the budgeted estimate. The general fund recorded $578.8 million more than budgeted estimates and the four other funds $45.7 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.