NASHVILLE, Tenn. – Tennessee Department of Finance and Administration Commissioner Butch Eley announced today that state revenue collections for December were $156.4 million higher than the budgeted estimate and were 7.84% more than December 2019.
“Total tax revenues for December exhibited remarkable growth compared to last year and were boosted by gains from both sales and corporate tax receipts,” Eley said. “The state’s sales tax, representing November taxable sales and the early holiday shopping season, continues to signify strong consumer activity during the ongoing pandemic. Corporate taxes, or franchise and excise taxes, while volatile on a monthly basis, also demonstrated notable growth over this same time last year with nearly 87 percent of the growth coming from increased quarterly estimated tax payments. All other revenues, combined, posted marginal gains compared to recorded revenues of one year ago.
“Next month’s January revenue report will fully capture consumer spending for the Christmas 2020 holiday season and while revenue collections continue to look promising, we will persist in monitoring our revenues and expenditures throughout the remainder of this fiscal year.”
On an accrual basis, December is the fifth month in the 2020-2021 fiscal year.
Total revenues in December were $156.4 million more than the budgeted estimate. The general fund recorded revenues exceeding budgeted estimates by $158.4 million, and the four other funds that share in state tax revenues were $2 million less than estimates.
Sales tax revenues were $28.4 million more than the estimate for December. The December growth rate was 6.56 percent. For five months, revenues are $435.4 million higher than estimated, and the growth rate is 4.96 percent.
Franchise and excise taxes combined were $120.5 million more than the December budgeted estimate. Year-to-date revenues are more than estimates in the amount of $259.7 million, or 3.34 percent above the same time period last year.
Gasoline and motor fuel revenues decreased by 6.72 percent compared to last December and were $3.9 million less than the budgeted estimate of $99.2 million. For five months revenues are $12.5 million less than estimates.
Motor vehicle registration revenues were $1.9 million more than the December estimate and on a year-to-date basis they are $10.3 million more than estimates.
Tobacco tax revenues were $5.9 million more than the budgeted estimate of $17.2 million. For five months revenues are $10.8 million more than estimated.
Privilege tax revenues were $6 million more than the budgeted estimate of $26.3 million. Year- to-date revenues for five months are $34.9 million more than the budgeted estimate.
Business tax revenues were $3 million more than the December estimate and $10.1 million more than estimates on a year-to-date basis.
Income tax revenues were $1.7 million less than the December estimate. For five months revenues are $0.7 million more than estimated.
All other taxes for December recorded a net decrease of $1.9 million compared to estimates.
Year-to-date revenues for five months were $732.8 million more than the budgeted estimate. The general fund recorded $715.5 in revenues more than estimates, and the four other funds recorded $17.3 million more than estimates. Year-to-date growth for the first five months is 3.38 percent.
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.