NASHVILLE, Tenn. – Tennessee revenues exceeded budgeted estimates for September, which is the second month of the state’s fiscal year. Finance and Administration Commissioner Larry Martin today reported that overall September revenues were $1.4 billion, which is $63.4 million more than September of last year and $53.3 million more than the budgeted estimate. The growth rate for September was 4.66%.
“September sales tax receipts continue to reflect strong consumer activity within the state while corporate tax revenues performed as expected,” Martin said. “All other revenues combined produced healthy growth in the month of September contributing to a strong start for the new 2018-2019 fiscal year.
“While we are pleased with the strong start, we need to be mindful we have another ten months to go in the fiscal year. As such, we will continue to closely monitor state spending and our revenue trends.”
On an accrual basis, September is the second month in the 2018-2019 fiscal year.
For September, general fund revenues exceeded the budgeted estimates in the amount of $64.2 million and the four other funds that share in state tax revenues were less than the budgeted estimate by $10.9 million.
Sales tax revenues were $40.4 million more than the estimate for September. The September growth rate was positive 7.23%. Year-to-date revenues are 6.67% more than this time last year.
Franchise and excise taxes combined were $2.9 million more than the September budgeted estimate of $397.8 million. The September growth rate was negative 0.49%, and on a year-to-date basis 0.01%.
Gasoline and motor fuel revenues for September increased by 3.09% and were $1.9 million more than the budgeted estimate of $101.7 million.
Motor Vehicle Registration revenues were $1.5 million more than the September estimate, and on a year-to-date basis exceed estimates by $13.3 million.
Tobacco tax revenues for the month were $0.6 million less than the budgeted estimate of $21.5 million. The growth rate for September was negative 1.01%.
Privilege tax revenues were $4.1 million more than the budgeted estimate of $27.3 million.
Business Tax receipts were $2.1 million more than the budgeted estimate for September.
Hall income tax revenues for September were $1.2 million less than the budgeted estimate. For two months revenues are $1.1 million less than the budgeted estimate.
Gross receipts, excluding TVA tax payments, were $1.3 million more than the budgeted estimate of $0.2 million for September.
All other taxes fell short of estimates by a net of $0.9 million.
Year-to date revenues for two months were $87.7 million more than the budgeted estimates. The general fund exceeded estimates by $78.6 million and the four other funds that share in state tax revenues $9.1 million.
The budgeted revenue estimates for 2018-2019 are based on the State Funding Board’s consensus recommendation of November 27, 2017 and adopted by the second session of the 110th General Assembly in May 2018. Also incorporated in the estimates are any changes in revenue enacted during the 2018 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.