June Revenues
NASHVILLE, TN – Tennessee revenues exceeded budgeted estimates for the month of June. Department of Finance and Administration Commissioner Jim Bryson today reported that total June tax revenues were $2.36 billion, $173.1 million more than the budgeted estimate and $68.2 million more than June 2024. The total tax growth rate for the month was 2.98 percent.
General fund revenues were $171.6 million more than the June estimate, and the four other funds that share in state tax revenues were $1.5 million more than the estimates.
On an accrual basis, June is the eleventh month in the 2024-2025 fiscal year.
“June tax revenues demonstrated promising growth relative to our monthly budget estimates,” Bryson said. “Sales tax collections were slightly above forecast, based on May’s spending. Also, corporate tax revenues, including franchise and excise taxes, were significantly higher than anticipated. We also saw substantial increases in professional privilege taxes, which further contributed to this month's positive results.
“With just one month left in the 2024–2025 fiscal year, we remain optimistic and will continue to monitor the year-end results.”
On a year-to-date basis, August through June, total tax revenues are 0.40 percent more than the budget estimate, or $81 million more than expectations. When compared to this same period last year, total tax revenues have decreased by $209.3 million or 1.02 percent.
General fund revenues are 0.41 percent more than the year-to-date budgeted estimate, or $70.6 million. Likewise, year-to-date general fund collections compared to this same period last year have decreased 0.72 percent or $125.7 million.
Individual tax performance compared to June 2025 Budgeted Estimates:
· Sales Taxes: Above estimate by 0.58% or $7.3 million
· Corporate Taxes (Franchise & Excise): Above estimate by 24.70% or $151.1 million
· Fuel Taxes: Below estimate by 1.23% or $1.4 million
· All other taxes: Above estimate by 7.76% or $16.1 million
Year-to-date performance compared to Budgeted Estimates:
· Sales Taxes: Above estimate by 0.93% or $123.5 million
· Corporate Taxes (Franchise & Excise): Below estimate by 4.56% or $171.2 million
· Fuel Taxes: Below estimate by 0.37% or $4.4 million
· All other taxes: Above estimate by 6.81% or $133.1 million
Individual tax performance compared to June 2024:
· Sales Taxes: Up 2.76% or $33.8 million
· Corporate Taxes (Franchise & Excise): Up 3.31% or $24.5 million
· Fuel Taxes: Up 1.54% or $1.7 million
· All other taxes: Up 3.82% or $8.2 million
Year-to-date tax performance compared to August 2023 through June 2024:
· Sales Taxes: Up 4.38% or $562.4 million
· Corporate Taxes (Franchise & Excise): Down 18.80% or $830.4 million
· Fuel Taxes: Up 0.65% or $7.6 million
· All other taxes: Up 2.51% or $51.1 million
The budgeted revenue estimates for 2024–2025 are based on the State Funding Board’s consensus recommendation from November 29, 2023, which was adopted by the second session of the 113th General Assembly in June 2024. These estimates also incorporate any revenue changes enacted during the 2024 General Assembly session. Monthly estimates for fiscal year 2024–2025 are available on the state’s website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.
On November 25, 2024, the State Funding Board met once again and recommended updated revenue projections for the 2024–2025 fiscal year. The Board adopted revised revenue growth ranges of negative 1.68 percent to negative 1.34 percent for total taxes and negative 2.50 percent to negative 1.91 percent for general fund revenues. The Board’s projected upper limit and the growth outlined in Governor Lee’s budget proposal for the first session of the 114th General Assembly reflect no changes to the current Department of Revenue’s state tax revenue estimates for the 2024–2025 fiscal year.
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