4-Month Tennessee Tax Revenues Exceed Estimates By $742.7M

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The Center Square [By Jon Styf] –

Tennessee again collected more taxes and fees than budgeted in November, collecting $1.5 billion. That was $156.8 million more than the budgeted estimate for the fourth month of the fiscal year, calculated on an accrual basis.

That means that Tennessee has now collected $742.7 million more than budgeted for the fiscal year.

“Despite total revenues outperforming budgeted estimates, individual tax growth was mixed,” Department of Finance and Administration Commissioner Jim Bryson said. “Growth from sales and use taxes, reflecting October consumer spending, remains strong, but weakness in franchise and excise taxes, privilege taxes and motor vehicle registrations restrained this month’s growth.

“November is the month when corporate tax filers who have requested an extension reconcile their books relative to their actual tax obligation and in some cases, request a refund.”

The largest factor in Tennessee collections remains sales tax, with $1.13 billion collected in November, which was 126.6 million more than budgeted. The sales tax growth rate remained over 10%.

There was also $101.6 million collected in franchise and excise taxes, about the $80 million estimate.

“Privilege tax collections continue to remain challenged due to high interest rates and motor vehicle registration payments are lower compared to this time last year due to the one-year registration waiver granted to individual Tennessee motorists,” Bryson said. “All other taxes taken together were above budgeted estimates for the month.

“While we are well ahead of our year-to-date budgeted estimates, we will continue to monitor economic activity and revenue trends to ensure fiscal stability.”

About the Author: Jon Styf, The Center Square Staff Reporter – Jon Styf is an award-winning editor and reporter who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies. Follow Jon on Twitter @JonStyf.