NASHVILLE, Tenn. – Tennessee Department of Finance and Administration Commissioner Larry Martin announced today that overall November state revenues were $1.0 billion, which is 8.98 percent more than November 2017 and $45.9 million more than the budgeted estimate.
“The positive gains in November are primarily due to strong sales tax growth,” Martin said. “Sales tax revenues, reflecting consumer spending occurring in October, recorded its best month since March 2018. Franchise and excise taxes were less than the estimate and recorded little growth compared to last year. All other revenue sources combined grew 9.85 percent and were better than the budgeted estimate for November.
“While we continue to see strong sales revenue growth, we will continue to watch closely revenue trends and adjust spending if growth weakens.”
On an accrual basis, November is the fourth month in the 2018-2019 fiscal year.
General fund revenues for November were $37.3 million more than the budgeted estimate, and the four other funds that share in state tax revenues were $8.6 more than the budgeted estimate.
Sales tax revenues were $46.6 million more than the estimate for November. The November growth rate was 9.10%. The year-to-date growth rate was 6.50%.
Franchise and excise taxes combined revenues for November were $30.3 million, which is $10.9 million less than the budgeted estimate of $41.2 million. The growth rate for November was positive 0.11%. The year-to-date growth rate was 2.13%.
Gasoline and motor fuel revenues increased by 7.83% and they were $0.5 million more than the budgeted estimate of $97.4 million.
Motor Vehicle Registration revenue receipts decreased by 4.07%, but were $1.3 million more than the November estimate.
Hall income tax revenues for November were $2.6 million more than the budgeted estimate.
Tobacco tax revenues for the month were $0.6 million more than the budgeted estimate.
Gross receipts tax revenues for November were $0.3 million more than the estimate.
Privilege tax revenues were $1.7 million more than the budgeted estimate of $26.8 million.
Business tax revenues were $0.7 million more than the November estimate.
All other tax revenues exceeded estimates by a net of $2.5 million.
Year-to-date revenues for four months were $136.9 million more than the budgeted estimate. The general fund exceeded estimates by $118.7 million and the four other funds that share in state tax revenues exceeded estimates by $18.2 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.