News release from Department of Finance and Administration
NASHVILLE, Tenn. – Tennessee tax revenues exceeded budgeted estimates in April. Department of Finance and Administration Commissioner Larry Martin today announced that overall April revenues were $1.8 billion, which is $185.0 million more than the state budgeted.
“Total reported revenues in April reflect significant improvement over this time last year in both sales and business taxes,” Martin said. “While franchise and excise taxes and income tax revenues are typically large in the month of April, much of the state’s revenue growth is a result of strong sales taxes, reflecting consumer confidence in Tennessee.”
On an accrual basis, April is the ninth month in the 2015-2016 fiscal year.
General fund revenues were more than the budgeted estimates in the amount of $165.9 million while the four other funds that share in state tax revenues were $19.1 million more than the estimates.
Sales taxes were $37.7 million more than the estimate for April and were 8.46% more than April 2015. April collections reflect retail business activity that occurred in March. For nine months revenues are $311.5 million higher than estimated. The year-to-date growth rate for nine months was 7.96%.
Franchise and excise taxes combined were $82.5 million higher than the budgeted estimate in April and the growth rate over April 2015 was 2.09%. For nine months revenues are $293.6 million more than the estimate and the year-to-date growth rate is 4.62%. However, adjusting a large one-time payment received last year, the underlying growth rate is positive 14.75%.
Gasoline and motor fuel revenues for April increased by 18.25% compared to April 2015 and were $9.9 million more than the budgeted estimate of $70.6 million. For nine months revenues have exceeded estimates by $33.1 million.
Tobacco taxes were $1.2 million less than the April budgeted estimate of $21.8 million. For nine months they are $10.8 million more than the budgeted estimate.
Inheritance and estate taxes were $6.7 million more than the April estimate. On a year-to-date basis revenues for nine months are $15.1 million more than the budgeted estimate.
Hall income taxes for April were $35.7 million more than the budgeted estimate. For nine months collections are $44.6 million more than the budgeted estimate.
Privilege taxes were $6.5 million more than the April estimate and on a year-to-date basis, August through April, revenues are $23.3 million more than the estimate.
Business taxes were $4.2 million more than the April estimate. For nine months revenues are $10.8 million more than the budgeted estimate.
All other taxes exceeded estimates by a net of $3.0 million.
Year-to-date revenues for nine months were $757.1 million more than the budgeted estimate. The general fund recorded $698.4 million more than budgeted estimates and the four other funds were $58.7 million more than the budgeted estimate.
The budgeted revenue estimates for 2015-2016 are based on the State Funding Board’s consensus recommendation of December 16, 2014 and adopted by the first session of the 109th General Assembly in April 2015. Also incorporated in the estimates are any changes in revenue enacted during the 2015 session of the General Assembly. These estimates are available on the state’s website at http://www.tn.gov/finance/article/fa-budget-rev.