NASHVILLE – Department of Finance and Administration Commissioner Butch Eley today announced that Tennessee tax revenues exceeded budgeted estimates in March. Overall March revenues totaled $1.6 billion, which is $286.8 million, or 22.78 percent more than the state received in March of 2021 and $348.8 million more than the budgeted estimate for the month.
“Total tax revenues for March exhibited remarkable growth compared to this same time last year,” Eley said. “Of the $286.8 million in additional tax revenue, nearly 70 percent is attributed to growth in sales tax collections, based on February sales tax activity in all categories of industry. Specifically, building materials grew 33.99 percent, general merchandise retailers saw 15.22 percent growth, food stores grew 11.43 percent, auto dealers and service stations saw a 19.50 percent increase in sales taxes, apparel and accessory retailers grew 36.58 percent, home furnishing retailers grew 23.51 percent, restaurants and bars serving food grew 33.41 percent and sales tax receipts on taxable services grew 45.70 percent. Aside from sales taxes, we saw notable growth in franchise and excise taxes, privilege taxes and motor vehicle registration fee receipts in March.
“At this time, the large tax growth we have experienced in these first eight months of the fiscal year puts the state in a good position to meet and exceed budgeted revenue estimates within the next few months. Nevertheless, we will continue to closely monitor our monthly receipts, being mindful we are in an extremely inflated economy and a large number of uncertainties still exist .”
On an accrual basis, March is the eighth month in the 2021-2022 fiscal year.
General fund revenues were $324.4 million more than the budgeted estimate while the four other funds that share in state tax revenues were $24.4 million more than the estimates.
Sales tax revenues were $196 million more than the estimate for March and were 25.53 percent more than March 2021. For eight months revenues are $1.5 billion more than estimated. The year-to-date growth rate for eight months was 17.88 percent.
Franchise and excise tax revenues combined were $114.6 million more than the budgeted estimate in March and the growth rate was 23.52 percent. For eight months, revenues are $828.8 million more than the estimate and the year-to-date growth rate is 33.72 percent.
Gasoline and motor fuel revenues for March increased by 3.13 percent compared to March 2021 and were $0.4 million less than the budgeted estimate of $83.6 million. For eight months, fuel tax revenues are above estimate by $33.4 million.
Motor vehicle registration revenues were $10.4 million more than the March estimate, and on a year-to-date basis they are $12.5 million more than estimates.
Tobacco tax revenues were $1 million more than the March budgeted estimate of $19.8 million. For eight months, revenues are $2.8 million less than the year-to-date budgeted estimate.
Privilege tax revenues were $13.3 million more than the March estimate. On a year-to-date basis, August through March, revenues are $116.8 million more than the estimate.
Business tax revenues were $8 million more than the March estimate. For eight months, revenues are $12.3 million more than the budgeted estimate.
Hall income tax revenues for the month were $0.4 million more than the budgeted estimate. For eight months, revenues are $4.4 million more than the budgeted estimate.
Mixed drink, or liquor-by-the-drink, taxes were $5.3 million more than the March estimate, and on a year-to-date basis, revenues are $32.4 million more than the budgeted estimate.
All other taxes were more than budgeted estimates by a net of $0.2 million.
Year-to-date revenues, August through March, are $2.5 billion more than the budgeted estimate. The growth rate for eight months is 18.62 percent. General fund revenues are $2.3 billion more than the budgeted estimate and the four other funds are $151.1 million more than estimated.
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.