Tennessee Collects $3B In Taxes, Fees In April
Image Credit: Tax revenue by Nick Youngson CC BY-SA 3.0 Pix4free
The Center Square [By Jon Styf] –
Tennessee collected $3 billion in taxes and fees in April, exceeding the budgeted monthly estimate by $429 million.
Through the first nine months of the fiscal year, the state is $1.9 billion above the budgeted estimate.
Collections for April were $54.4 million above collections for April 2022.
“April total tax revenues reflect a significant slowdown in growth compared to the beginning of this fiscal year,” Tennessee Finance and Administration Commissioner Jim Bryson said. “While receipts from sales and use taxes, franchise and excise taxes, and the state business tax preceded all tax sources in outperforming budgeted estimates for the month, we are noticing signs of slower economic activity. Gas tax revenues were notably lower for the month and real estate activity within the state continues to remain depressed, thus greatly reducing realty transaction taxes which are reported under the privilege tax category.”
Sales tax remains the largest factor in collection, totaling $1.1 billion more in collections than the budgeted estimate for the fiscal year and $121.4 million more than the estimate for April.
The $1.22 billion of April sales tax collections were more than the $1.17 billion collected in April 2022.
“It is expected that state revenues will continue to outperform our monthly budgeted estimates and that we will soon exceed the annual revenue estimates set at the beginning of the fiscal year,” Bryson said. “However, with only three reporting months left for the year, we are carefully watching our ability to meet the revised revenue levels that were recommended at last year’s November Funding Board meeting and included in the general assembly’s appropriations bill passed last month. As such, we will closely monitor collections and expenditures until year end.”
The revised budget estimates were $2.7 billion more than the original estimates, meaning the state would need to collect $800 million more than estimated in the final three months of the fiscal year to hit the mark.
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.