NASHVILLE, Tenn. – Tennessee revenues exceeded the budgeted estimates for the second month of the state’s fiscal year. Finance and Administration Commissioner Larry Martin today reported that overall September’s revenues were $1.3 billion, which is $78.7 million more than September 2015, and $116.6 million over the budgeted estimate. The growth rate for September was 6.38%.
“Sales taxes reflecting August consumer activity grew 4.50% over the same time period one year ago,” Martin said. “Corporate taxes posted positive double digit growth for the month while all other revenues, taken as a group, slightly exceeded last year’s recorded revenues.
“While we are encouraged by the September revenue numbers, we do have some concerns about the sustainability of our franchise and excise tax growth for the balance of this year.”
On an accrual basis, September is the second month in the 2016-2017 fiscal year.
For September, general fund revenues exceeded the budgeted estimates by $107.6 million and the four other funds that share in state tax revenues by $9.0 million above the estimates.
Sales tax revenues were $24.1 million more than the estimate for September. The September growth rate was positive 4.50%. Year-to-date revenues are 3.31% more than this time last year.
Franchise and excise taxes combined were $75.8 million more than the September budgeted estimate of $329.1 million. The September growth rate was positive 12.22%, and on a year-to-date basis 19.95%.
Gasoline and motor fuel revenues for September increased by 4.33% and were $6.2 million more than the budgeted estimate of $74.0 million.
Motor Vehicle Registration revenues were $3.5 million more than the September estimate, and on a year-to-date basis exceed estimates by $2.9 million.
Tobacco tax revenues for the month were $0.5 million more than the budgeted estimate of $21.4 million. The growth rate for September was negative 3.15%.
Privilege tax revenues were $3.6 million more than the budgeted estimate of $24.0 million.
Business Tax receipts were $1.3 million more than the budgeted estimate for September.
Inheritance and estate tax revenues were $4.2 million more than the budgeted estimate.
Hall income tax revenues for September were $3.8 million less than the budgeted estimate. For two months revenues are $4.0 million below the budgeted estimate.
All other taxes exceeded estimates by a net of $1.2 million.
Year-to date revenues for two months were $154.6 million more than the budgeted estimates. The general fund exceeded estimates by $139.9 million and the four other funds that share in state tax revenues $14.7 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. These estimates are available on the state’s website at http://www.tn.gov/finance/article/fa-budget-rev.