NASHVILLE, Tenn. – Tennessee revenues exceeded budgeted estimates for September, which is the second month of the state’s fiscal year. Finance and Administration Commissioner Stuart McWhorter today reported that overall September revenues were $1.6 billion, which is $138.7 million more than September of last year and $138.8 million more than the budgeted estimate. The growth rate for September was 9.75%.
“September sales tax receipts continue to reflect strong consumer activity within the state and corporate tax revenues greatly outperformed expectations,” McWhorter said. “All other revenues combined also exceeded estimates for the month and have contributed to a strong start for the new 2019-2020 fiscal year.
“While we are encouraged to see early monthly revenue receipts outpacing our estimates, we must be mindful that the coming month of October is when corporations reconcile their books relative to their actual tax obligation, and corporate calendar year filers who filed a six month extension are allowed to request a refund. With ten months to go in the fiscal year, we will continue to closely monitor the state’s economy and financial trends.”
On an accrual basis, September is the second month in the 2019-2020 fiscal year.
For September, general fund revenues exceeded the budgeted estimates in the amount of $131.2 million, and the four other funds that share in state tax revenues were more than the budgeted estimate by $7.6 million.
Sales tax revenues were $31 million more than the estimate for September. The September growth rate was positive 4.69%. Year-to-date revenues are 6.50% more than this time last year.
Franchise and excise taxes combined were $95.8 million more than the September budgeted estimate of $393.4 million. The September growth rate was 22.12%, and on a year-to-date basis 23.02%.
Gasoline and motor fuel revenues for September increased by 5.01%, but were $0.2 million less than the budgeted estimate of $109 million.
Motor Vehicle Registration revenues were $2.8 million more than the September estimate, and on a year-to-date basis exceed estimates by $2.9 million.
Tobacco tax revenues for the month were $0.7 million more than the budgeted estimate of $20.6 million. The growth rate for September was 1.69%.
Privilege tax revenues were $5 million more than the budgeted estimate of $27.2 million.
Business Tax receipts were $0.1 million more than the budgeted estimate for September.
Hall income tax revenues for September were $1.4 million more than the budgeted estimate. For two months revenues are $1.6 million more than the budgeted estimate.
All other taxes fell short of estimates by a net of $2.2 million.
Year-to date revenues for two months were $167.6 million more than the budgeted estimates. The general fund exceeded estimates by $154.1 million and the four other funds that share in state tax revenues $13.5 million.
The budgeted revenue estimates for 2019-2020 are based on the State Funding Board’s consensus recommendation of November 26, 2018 and adopted by the first session of the 111th General Assembly in April 2019. Also incorporated in the estimates are any changes in revenue enacted during the 2019 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.