NASHVILLE, Tenn. – Tennessee revenues were more than the budgeted estimates for the first month of the state’s fiscal year. Finance and Administration Commissioner Stuart McWhorter today reported that overall August revenues were $1.1 billion, which is $82.8 million more than August 2018, and $28.8 million more than the budgeted estimates. The growth rate for all taxes in August was 7.87%.
“August revenues exceeded expectations and represent a good start to Tennessee’s new 2020 fiscal year,” McWhorter said. “Sales and use tax receipts, reflecting consumer activity from the month of July, outperformed estimates along with corporate tax collections. Both these taxes will be closely watched throughout the fiscal year as they consist of nearly 80% of Tennessee’s general tax base.
“A positive balance against the August estimate is a welcome start given the economic uncertainty reported in the national news. As such, we will continue to monitor economic activity and revenue trends to ensure fiscal stability.”
On an accrual basis, August is the first month in the 2019-2020 fiscal year.
General fund revenues were $22.9 million more than the August estimate. The four other funds that share in state tax revenues were $5.9 million more than the estimates.
Sales tax revenues were $9.1 million more than the estimate for August. The August growth rate was positive 8.35%.
Franchise and excise taxes combined were $7 million more than the budgeted estimate of $37.2 million.
Gasoline and motor fuel revenues increased by 8.07% from August of 2018, and were $3.4 million more than the budgeted estimate of $106.3 million.
Business tax revenues were $3.6 million more than the August estimate of $6.5 million.
Tobacco tax revenues for the month were more than budgeted estimates by $2 million.
Privilege tax revenues for August were $2 million more than the estimate.
Motor vehicle registration revenues were very near the August estimate of $26.9 million.
Gross Receipts tax revenues for August were $0.8 million more than the budgeted estimate of $6.6 million.
All other tax revenues exceeded budgeted estimates by a net of $0.9 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.