August state revenue $38M better than budget

News release from Department of Finance and Administration
NASHVILLE, Tenn. – Tennessee revenues exceeded the budgeted estimates for August, which is the first month of the state’s fiscal year. Finance and Administration Commissioner Larry Martin today reported that overall August revenues were $948.2 million, which is $49.8 million more than August of last year and $38.0 million more than the budgeted estimate. The growth rate for all taxes in August was 5.54%.

“Corporate tax receipts and sales tax revenue reflecting July’s consumer activity posted positive growth for the month,” Martin said. “All other taxes revenues, taken as a group, also recorded positive growth.

“The positive revenue numbers for August reflect a continuing good economic environment in our state. It should be noted, however, that the sales tax, which is our largest revenue source, grew at a moderate rate of 2.2%. This is well below the average growth of 7.3% over the first six months of the calendar year.”

On an accrual basis, August is the first month in the 2016-2017 fiscal year.

General fund revenues exceeded estimates by $32.3 million and the four other funds that share in state tax revenues were $5.7 million over estimates.

Sales tax revenues were $24.9 million more than the estimate for August. The August growth rate was positive 2.16%.

Franchise and excise taxes combined were $10.3 million more than the budgeted estimate of $31.8 million. August is usually a very small revenue month for F&E taxes.

Gasoline and motor fuel revenues increased by 1.09% from August of last year and were $4.6 million more than the budgeted estimate of $70.8 million.

Inheritance tax revenues exceeded the budgeted estimate by $1.3 million.

Privilege tax revenues were $5.6 million less than the budgeted estimate of $26.5 million.

Business tax revenues were $4.4 million more than the August estimate.

Tobacco tax revenues for the month were less than the budgeted estimates by $0.9 million.

All other tax revenues were under budget by a net of $1.0 million.

The budgeted revenue estimates for 2016-2017 are based on the State Funding Board’s consensus recommendation of November 23, 2015 and adopted by the second session of the 109th General Assembly in April 2016. Also incorporated in the estimates are any changes in revenue enacted during the 2016 session of the General Assembly.