April 2018 State Revenues Higher than Expected, Show Increase from Previous Year
NASHVILLE, Tenn. – Tennessee Department of Finance and Administration Commissioner Larry Martin today announced that revenues for April exceeded the monthly revenues from the previous year. State revenues for April were $1.9 billion, which is a growth of 3.76 percent more than last year and $128.3 million more than the state budgeted.
“Total revenues in April reflect significant improvement compared to this time last year,” Martin said. “Much of the growth is driven by franchise and excise tax payments, business tax receipts, privilege taxes and sales tax revenues. Hall income tax revenues posted a significant reduction from receipts received in April 2017, but were expected to be lower due to several large early payments made in December and January of this fiscal year. All other tax revenues, taken as a group, exceeded the April estimates.
“While revenues look promising, we will continue to monitor revenue and expenditure patterns for the remainder of this fiscal year in order to financially posture ourselves for the future.”
On an accrual basis, April is the ninth month in the 2017-2018 fiscal year.
General fund revenues were more than the budgeted estimates in the amount of $140.2 million while the four other funds that share in state tax revenues were $11.9 million less than the estimates.
Sales tax revenues were $12.4 million more than the estimate for April and they were 4.31percent more than April 2017. April sales tax revenues reflect retail business activity that occurred in March. For nine months revenues are $69.6 million higher than estimated. The year-to-date growth rate for nine months was 4.68 percent.
Franchise and excise tax revenues combined were $135.9 million higher than the budgeted estimate in April, and the growth rate compared to April 2017 was positive 11.32 percent. For nine months revenues are $171.5 million more than the estimate and the year-to-date growth rate is negative1.28 percent. However, adjusting for the one-time payments received last fiscal year and this fiscal year produces a positive year-to-date underlying growth rate of 5.65 percent.
Gasoline and motor fuel revenues for April increased by 21.01 percent compared to April 2017 and they were $2.8 million more than the budgeted estimate of $91.1 million. For nine months revenues are more than estimated by $8.6 million.
Tobacco tax revenues were $2.6 million less than the April budgeted estimate of $21.8 million. For nine months they are $7.9 million less than the budgeted estimate.
Inheritance and estate tax revenues were $0.4 million less than the April estimate. On a year-to-date basis revenues for nine months are $2.9 million less than the budgeted estimate.
Hall income tax revenues for April were $44.8 million less than the budgeted estimate. For nine months revenues are $17.5 million more than the budgeted estimate.
Privilege tax revenues were $8.4 million more than the April estimate, and on a year-to-date basis, August through April, revenues are $20.1 million more than the estimate.
Business tax revenues were $14.5 million more than the April estimate. For nine months revenues are $15.9 million more than the budgeted estimate.
All other tax revenues exceeded estimates by a net of $2.1 million.
Year-to-date revenues for nine months were $308.0 million more than the budgeted estimate. The general fund recorded $270.2 million more than budgeted estimates and the four other funds $37.8 million.
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.