NASHVILLE, Tenn. – Tennessee revenues were more than the budgeted estimates for the first month of the state’s fiscal year. Finance and Administration Commissioner Butch Eley today reported that August revenues were $1.4 billion, which is $255.8 million more than August 2020, and $267.9 million more than the budgeted estimates. The growth rate for all taxes in August was 22.11 percent.
“Sales tax revenues, reflecting July’s consumer activity, and state corporate tax receipts (franchise and excise taxes) both posted substantial growth for the month compared to this same time last year,” Eley said. “While sales and corporate taxes constitute nearly 93 percent of the month’s growth, there are notable increases in returns from eating and drinking establishments and consumer fuel utilization.
“The tax growth numbers for August continue to reflect a strong economic environment in our state and although we are pleased with the start to this new fiscal year, we must continue to remain attentive to inflationary pressures and the ongoing economic effects associated with the pandemic.”
On an accrual basis, August is the first month in the 2021-2022 fiscal year.
General fund revenues were $247.9 million more than the August estimate. The four other funds that share in state tax revenues were $20 million more than the estimates.
Sales tax revenues were $205.9 million more than the estimate for August. The August growth rate was 21.73 percent.
Franchise and excise taxes combined were $61.2 million more than the budgeted estimate of $33.5 million and the growth rate was 122.88 percent.
Gasoline and motor fuel revenues increased by 5.76 percent from August of 2020 and were $3.4 million more than the budgeted estimate of $103.5 million.
Business tax revenues were $2.9 million less than the August estimate of $9.2 million.
Tobacco tax revenues for the month were less than budgeted estimates by $3.5 million.
Privilege tax revenues for August were $0.1 million less than the month’s estimate.
Motor vehicle registration revenues were $0.1 million more than the August estimate of $28.6 million.
Hall income tax revenues for August were $1.5 million more than the budgeted estimate.
Mixed drink, or Liquor-by-the-drink, taxes were $2.2 million more than the August estimate of $13.8 million.
All other tax revenues were more than estimates by a net of $0.1 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.