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 $1.4 billion, which is 21.73 percent more than November 2020 and $286.5 million more than the budgeted estimate.
“We continue to be encouraged by the strong sales and corporate tax growth exhibited in the month of November,” Eley said. “Sales tax receipt growth, which represents taxable sales activity in October, remained elevated for the month even as the state begins to compare similar collections that were higher in the past year due to recently enacted internet and remote sales tax laws. All other taxes, taken as a group, exceeded the November estimate as well.
“While the economic progress and revenue growth the state has experienced year-to-date has been remarkable, we remain concerned over the sustainability of such high growth rates and will continue to monitor economic activity and revenue trends to ensure fiscal stability.”
On an accrual basis, November is the fourth month in the 2021-2022 fiscal year.
General fund revenues for November were $266.4 million more than the budgeted estimate, and the four other funds that share in state tax revenues were $20.1 million more than the budgeted estimate.
Sales tax revenues were $182.3 million more than the estimate for November. The November growth rate was 17.62 percent. Year-to-date revenues are $709.6 million higher than estimated, and the growth rate is 19.91 percent.
Franchise and excise taxes combined revenues for November were $110.2 million or $81.8 million more than the November budgeted estimate. For four months, revenues are $401.4 million higher than estimated, and the growth rate is 50.20 percent.
Gasoline and motor fuel revenues increased 4.34 percent compared to last November and were $4 million more than the budgeted estimate of $101.1 million. Year-to-date revenues are $14.1 million higher than estimated.
Motor Vehicle Registration revenue receipts decreased by 4.49 percent and were $0.9 million less than the November estimate. Year-to-date revenues are $4.9 million higher than estimated.
Tobacco tax revenues were $19.5 million or $1.8 million above the budgeted estimate for the month.
Privilege tax revenues were $10.7 million more than the budgeted estimate of $33.1 million. For four months, revenues are $44.6 million higher than estimated, and the growth rate is 25.37 percent.
Business tax revenues were $0.9 million more than the November estimate. However, year-to-date revenues are $1.3 million lower than estimated.
Mixed drink, or liquor-by-the-drink, taxes were $7 million more than the November estimate, and on a year-to-date basis, revenues are $13.6 million more than the estimate.
Hall income tax revenues for November were $0.2 million more than the budgeted estimate.
All other tax revenues together were less than estimates by a net of $1.3 million.
Year-to-date revenues for four months were $1.189 billion more than the budgeted estimate. The general fund exceeded estimates by $1.112 billion and the four other funds that share in state tax revenues exceeded estimates by $77 million.
The budgeted revenue estimates for 2021-2022 are based on the State Funding Board’s consensus recommendation of November 24, 2020 and adopted by the first session of the 112th General Assembly in April 2021. Also incorporated in the estimates are any changes in revenue enacted during the 2021 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.