Despite The Unprecedented Toll That COVID-19 And The Resulting Shutdowns, Etc. Has Had On Tennessee, The State Managed To Still Collect More Tax Revenue In The First Nine Months of 2020 Than In The Same Time Frame in 2019.
The Center Square [By Vivian Jones]-
Despite economic turmoil caused by the response to the COVID-19 pandemic, Tennessee collected 2.3% more in tax revenue during the first nine months of 2020 than in the same period in 2019.
Tennessee was one of only 10 states to see a year-over-year increase in tax revenue through three quarters, according to analysis from the Tax Foundation, an independent tax policy nonprofit.
Nationwide, state tax collections declined by 4.4% on average through the end of September compared with the first nine months in 2019.
In Tennessee’s annual financial report, which was published this week, state finance officials described the economic toll COVID-19-related shutdowns took on Tennessee’s economy.
“In Tennessee, nearly 400,000 jobs were lost between March and April and the state’s unemployment rate shot up to 15.5 percent in April, representing an unprecedented 12.2 percentage point increase from the month prior,” the report read.
Officials said while they anticipate the COVID-19-related recession peaked in April, surging COVID-19 cases could bring more economic uncertainty in the future.
“Expectations are that the trough of the recession occurred in April of 2020 and that the Tennessee economy will see positive growth going forward,” the report read. “However, with a recent surge in new COVID-19 cases and no new fiscal stimulus in sight, the recovery could be one of fits and starts.”
The state’s GDP is projected to recover to pre-pandemic levels by the end of 2022.