NASHVILLE, Tenn. – Tennessee revenues were more than the budgeted estimates for the first month of the state’s fiscal year. Finance and Administration Commissioner Larry Martin today reported that overall August revenues were $1.05 billion, which is $71.5 million more than August 2017, and $34.4 million more than the budgeted estimates. The growth rate for all taxes in August was 7.29%.
“August revenues have exceeded expectations and demonstrate the continued strength of the Tennessee economy,” Martin said. “Sale and use tax receipts, reflecting July consumer sales activity, motor vehicle registration and business tax receipts all posted growth that contributed to the state outperforming its budgeted estimate. However, franchise and excise taxes and gross receipts fell short of their respected estimates and offset some of the positive advancement.
“August numbers are a positive start to Fiscal Year 2019. Given that we are in one of the longest economic expansions in history, we will continue to monitor economic activity and revenue trends.”
On an accrual basis, August is the first month in the 2018-2019 fiscal year.
General fund revenues were $14.4 million more than the August estimate. The four other funds that share in state tax revenues were $20 million more than the estimates.
Sales tax revenues were $18.3 million more than the estimate for August. The August growth rate was positive 6.11%.
Franchise and excise taxes combined were $4.5 million less than the budgeted estimate of $37.4 million.
Gasoline and motor fuel revenues increased by 9.19% from August of 2017, and were $5.3 million more than the budgeted estimate of $96.2 million.
Business tax revenues were $4.9 million more than the August estimate of $4.9 million.
Tobacco tax revenues for the month were less than budgeted estimates by $1.0 million.
Privilege tax revenues for August were $0.9 million more than the estimate.
Motor vehicle registration revenues were $11.8 million more than the August estimate.
Gross Receipts tax revenues for August were $2.6 million less than the budgeted estimate of $13.4 million.
All other tax revenues exceeded budgeted estimates by a net of $1.3 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.