NASHVILLE, Tenn. – Tennessee Department of Finance and Administration Commissioner Stuart McWhorter announced today that state revenue collections for December were $55.3 million higher than the budgeted estimate and 4.87% more than December 2018.
“Total revenues exceeded budget estimates in December primarily due to continued strong sales and corporate tax receipts,” McWhorter said. “December sales tax revenues reflect November retail activity, which includes Black Friday and after-Thanksgiving sales. January’s revenue report will capture consumer spending for the remainder of the Christmas holiday season. All other revenue combined exceeded estimates by $6 million and grew one percent compared to the same month last year.”
On an accrual basis, December is the fifth month in the 2019-2020 fiscal year.
Total revenues in December were $55.3 million more than the budgeted estimate. The general fund recorded revenues exceeding budgeted estimates by $50.2 million, and the four other funds that share in state tax revenues were $5.1 million more than estimates.
Sales tax revenues were $19.6 million more than the estimate for December. The December growth rate was 4.15 percent. For five months, revenues are $123.5 million higher than estimated, and the growth rate is 5.54 percent.
Franchise and excise taxes combined were $29.7 million more than the December budgeted estimate. Year-to-date revenues are more than estimates in the amount of $151.8 million, or 17.75 percent compared to the same time period last year.
Gasoline and motor fuel revenues increased by 6.76 percent more than last December and $1.4 million more than the budgeted estimate of $100.8 million. For five months revenues are $31.2 million more than estimates.
Motor vehicle registration revenues were $0.9 million less than the December estimate, but on a year-to-date basis they are $5.1 million more than estimates.
Tobacco tax revenues were $1.4 million less than the budgeted estimate of $18.4 million. For five months revenues are $3.1 million less than estimated.
Privilege tax revenues were $3.1 million more than the budgeted estimate of $23.3 million. Year-to-date revenues for five months are $21.5 million more than the budgeted estimate.
Business tax revenues were $1.2 million more than the December estimate and $6.7 million more than estimates on a year-to-date basis.
All other taxes for December recorded a net increase of $2.6 million compared to estimates.
Year-to-date revenues for five months were $351.1 million more than the budgeted estimate. The general fund recorded $292.3 in revenues more than estimates, and the four other funds recorded $58.8 million more than estimates.
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.