State Revenues Continue to Exceed Estimates
Tennessee Department of Finance and Administration Commissioner Jim Bryson this week announced that Tennessee tax revenues exceeded budgeted estimates in October. Overall October revenues were $1.5 billion, which is $125.4 million more than October of last year and $178.1 million more than the budgeted estimate. The growth rate for October was 8.93%. October sales tax receipt growth, reflecting September taxable sales activity, made up 92% of the month’s growth from last year. The largest retail sales gains for the month came from the categories of building materials and eating and drinking places. All other state tax categories combined experienced limited growth.
“In the first three months of the fiscal year, we are pleased to have outperformed our budgeted estimates by nearly 13 percent and to have growth, compared to last year, near ten percent. However, we expect these elevated measures will lessen as we progress through the remainder of the fiscal year. As such, we will continue to monitor economic activity and revenue trends to ensure fiscal stability.”
Sales tax revenues were $128.9 million more than the estimate for October. The October growth rate was 11.27%. While sales tax is significantly outperforming estimates, fuel taxes are not. Gasoline and motor fuel revenues increased by 2.15% and were $0.3 million more than the budgeted estimate of $111.9 million. Year-to-date fuel tax collections are lower by 0.45 percent compared to this same time last year. Motor Vehicle Registration revenue receipts decreased by 35.13% from this same time last year but were $1.6 million more than the October estimate. August through October, motor vehicle registration revenues are 24.385 lower because of the one-year registration renewal waiver.
