NASHVILLE, Tenn. – Department of Finance and Administration Commissioner Stuart McWhorter today announced that Tennessee tax revenues exceeded budgeted estimates in March. Overall March revenues totaled $1.1 billion, which is $52.8 million more than the state received in March of 2018 and $28.6 million more than the budgeted estimate for the month.
“Sales tax revenues continue to demonstrate the strength of the Tennessee consumer by outpacing last year’s receipts and the state’s budgeted estimate for the month,” McWhorter said. “Franchise and excise taxes also showed growth compared to March 2018, but were less than the state’s estimate. All other tax revenues combined exceeded the month’s budgeted estimates.
“The state’s year-to-date tax revenue growth indicates a promising finish to the 2018-2019 fiscal year. However, a fourth of the state’s volatile corporate tax revenue collections typically occur within the next month. Therefore, we will continue to monitor our monthly tax receipts closely.”
On an accrual basis, March is the eighth month in the 2018-2019 fiscal year.
General fund revenues were $29 million more than the budgeted estimate while the four other funds that share in state tax revenues were $0.4 million less than the estimates.
Sales tax revenues were $35 million more than the estimate for March and were 5.68 percent more than March 2018. For eight months revenues are $212.9 million more than estimated. The year-to-date growth rate for eight months was 5.78 percent.
Franchise and excise tax revenues combined were $8.3 million less than the budgeted estimate in March, but the growth rate was 6.41 percent. For eight months revenues are $13.3 million less than the estimate and the year-to-date growth rate is negative 0.18 percent. However, adjusting for the one-time payments received last fiscal year produces a year-to-date underlying growth rate of 4.22 percent.
Gasoline and motor fuel revenues for March increased by 0.51 percent compared to March 2018 and were $5.1 million less than the budgeted estimate of $83.7 million. For eight months revenues have exceeded estimates by $1.3 million.
Motor vehicle registration revenues were $0.6 million more than the March estimate, and on a year-to-date basis they are $20.6 million more than estimates.
Tobacco tax revenues were $1.6 million more than the March budgeted estimate of $19.8 million. For eight months revenues are $5.6 million less than the year-to-date budgeted estimate.
Privilege tax revenues were $2 million less than the March estimate. On a year-to-date basis, August through March, revenues are $5.5 million more than the estimate.
Business tax revenues were $1.9 million more than the March estimate. For eight months revenues are $13.5 million more than the budgeted estimate.
Hall income tax revenues for the month were $3.6 million more than the budgeted estimate. For eight months revenues are $1.9 million more than the budgeted estimate.
All other taxes were less than budgeted estimates by a net of $1.3 million.
Year-to-date revenues, August through March, are $251.5 million more than the budgeted estimate. The growth rate for eight months is 4.10 percent. General fund revenues are $224.3 million more than the budgeted estimate and the four other funds are $27.2 million more than estimated.
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.