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November Revenues

Monday, December 14, 2020 | 12:42pm

NASHVILLE, Tenn. – Tennessee revenue collections for November exceeded the budgeted estimate. Department of Finance and Administration Commissioner Butch Eley announced today that overall November state revenues were $1.1 billion, which is 1.97 percent more than November 2019 and $129.5 million more than the budgeted estimate.

“November sales tax collections, which represents consumer taxable sales activity in October, includes the first month of sales tax payments made by marketplace facilitators, which accounted for 2.9% of our sales tax growth,” Eley said. “The negative growth in franchise and excise tax collections, which is a combination of tax filings and estimated payments, reflects the sensitivity of these taxes to business cycle fluctuations.

“The good news is that we are in a positive position relative to the state’s budget and we intend to keep our spending in line with revenue collections while continuing to maintain citizen services. We will continue to plan for the worst and hope for the best.”

On an accrual basis, November is the fourth month in the 2020-2021 fiscal year.

General fund revenues for November were $123.9 million more than the budgeted estimate, and the four other funds that share in state tax revenues were $5.6 more than the budgeted estimate.

Sales tax revenues were $122.2 million more than the estimate for November. The November growth rate was 7.09%. The year-to-date growth rate is 4.57%. Beginning on October 1, 2020, marketplace facilitators that make or facilitate more than $100,000 in sales to Tennessee customers in the previous 12-month period are required to collect and remit Tennessee sales tax. Marketplace facilitators are businesses that own or operate a website or other platform where sales are made on behalf of marketplace sellers (i.e. third parties).

Franchise and excise taxes combined revenues for November were $26.7 million, which is $3.3 million less than the budgeted estimate of $30 million. The growth rate for November was negative 60.67%. The year-to-date growth rate is negative 3.27%.

Gasoline and motor fuel revenues decreased 3.62% against November 2019 and they were $1.6 million less than the budgeted estimate of $102.2 million for the current month.

Motor Vehicle Registration revenue receipts increased by 2.14% and were $1.6 million more than the November estimate.

Hall income tax revenues for November were $0.6 million less than the budgeted estimate.

Tobacco tax revenues were $18.4 million or marginally above the estimate for the month.

Privilege tax revenues were $9.8 million more than the budgeted estimate of $30.6 million, due in part to strong realty transfer and realty mortgage tax receipts.

Business tax revenues were $5 million more than the November estimate.

Mixed drink, or liquor-by-the-drink, taxes were $3 million less than the November estimate, and on a year-to-date basis, revenues are $13.6 million less than the estimate.

All other tax revenues together were less than estimates by a net of $0.6 million.

Year-to-date revenues for four months were $576.4 million more than the budgeted estimate. The general fund exceeded estimates by $557.1 million and the four other funds that share in state tax revenues exceeded estimates by $19.3 million.

The budgeted revenue estimates for 2020-2021 are based on the State Funding Board’s consensus recommendation of November 26, 2019 and adopted by the second session of the 111th General Assembly in June 2020. Also incorporated in the estimates are any changes in revenue enacted during the 2020 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.

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