December Revenues Higher than Expected, Show Increase from Previous Year
NASHVILLE, Tenn. – Tennessee Department of Finance and Administration Commissioner Larry Martin announced today that revenues for December posted higher than expected and exceeded the monthly revenues from the previous year. State revenues for December were $1.4 billion, which is a growth of 11.34 percent and $139.9 million more than December 2016.
“Total revenues in December were higher than expected due to revenues in the sales, income and corporate tax categories,” Martin said. “Recorded revenues in the corporate category include two substantial one-time payments. The substantial gain in the Hall income tax is thought to be driven by the pre-payment of 2017 taxes due to recent changes in the federal tax code. December sales tax revenues reflect retail activity that occurred in November which includes Black Friday and after-Thanksgiving sales. January’s report will capture consumer spending for the Christmas holiday season. All other revenues, combined, posted marginal gains compared to recorded revenues of one year ago.”
On an accrual basis, December is the fifth month in the 2017-2018 fiscal year.
Total revenues in December were $171.6 million more than the budgeted estimate. The general fund recorded revenues exceeding budgeted estimates by $157.6 million, and the four other funds that share in state tax revenues were $14.0 million more than estimates.
Sales tax revenues were $32.6 million more than the estimate for December. The December growth rate was 8.73 percent. For five months revenues are $49.6 million higher than estimated, and the year-to-date growth rate is 4.61 percent.
Franchise and excise taxes combined, including the one-time substantial payments, were $103.3 million more than the December budgeted estimate. For five months revenues are more than estimates in the amount of $107.9 million.
Gasoline and motor fuel revenues for December increased by 23.19 percent, but were $3.4 million less than the budgeted estimate of $92.5 million. For five months revenues are $13.1 million more than estimates.
Motor vehicle registration revenues were $4.5 million more than the December estimate, and on a year-to-date basis they are $9.8 million more than estimates.
Tobacco tax revenues were $2.6 million more than the budgeted estimate of $19.4 million. For five months revenues are $1.3 million less than estimated.
Privilege tax revenues were $0.6 million more than the budgeted estimate of $22.6 million. Year-to-date revenues for five months are $5.7 million more than the budgeted estimate.
Inheritance and estate tax revenues for the month were comparative to the budgeted estimate. For five months revenues are $2.1 million less than the budgeted estimate.
Business tax revenues were $0.3 million more than the December estimate and $1.4 million more than estimates on a year-to-date basis.
Hall income tax revenues, including the very large estimated pre-payment of 2017 taxes, were $31.0 million more than the budgeted estimate.
All other taxes for December recorded a net increase of $0.1 million compared to estimates.
Year-to-date revenues for five months were $210.2 million more than the budgeted estimate. The general fund recorded $172.7 in revenues more than estimates, and the four other funds $37.5 million more than estimates.
The budgeted revenue estimates for 2017-2018 are based on the State Funding Board’s consensus recommendation of November 29, 2016 and adopted by the first session of the 110th General Assembly in May 2017. Also incorporated in the estimates are any changes in revenue enacted during the 2017 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.