July Revenues $303.6 Million Above Budget Estimate | New
Tennessee’s revenue in July was $1.6 billion, $303.6 million more than the budgeted estimate and $138.3 million more than the state received in July 2021, according to Tennessee Department of Finance and Administration Commissioner Jim Bryson. The growth rate for July was 9.43% on Friday August 12.
“Total tax revenue for the month of July reflects unusual growth compared to the same period last year,” Commissioner Bryson said. “Tax revenue from sales and use, reflecting taxable sales activity in June, exceeded expectations and was the main contributor to our monthly year-over-year comparison.
“State corporate tax revenue, or franchise and excise taxes, as well as real estate transfer and mortgage tax collections, included in our privileged tax revenue, have also greatly exceeded estimates. All other revenue combined posted moderate gains from July revenue a year ago.
“As the state prepares to close the 2021-2022 fiscal year, it should be noted that the total annual tax growth of 16.95% was the highest since the 1992-1993 fiscal year, when growth was near by 19% after several subsequent tax increases.Compared to last year’s revenue, the state’s total tax revenue has increased by just over $3 billion.
“Additionally, when comparing our total tax revenue to our revised revenue estimate, the total growth was $1.7 billion, and general fund revenue exceeded the revised budget by $1.5 billion. .
“Despite this unusual growth, future growth remains a concern. As such, we will continue to monitor domestic and global economic indicators to manage our spending and revenue expectations appropriately.
According to accrual accounting, July is the last month of the 2021-2022 fiscal year. The reported final earnings will be subject to accrual adjustments which may increase or decrease the cash amounts recorded on an audited basis.
Revenue from the general fund was $280 million higher than budget estimates, and the other four funds that share state tax revenues were $23.6 million higher than estimated.
Sales tax revenue was $244.7 million higher than the July estimate and 11.43% higher than July 2021. For the year, revenue is 2.5% higher billion dollars to estimates with an annual growth rate of 15.59%.
Combined franchise and excise tax revenues were $26.2 million higher than budget estimates in July, and the growth rate over July 2021 was 11.18%. For the year, revenue is $1.7 billion higher than estimate, and the year-to-date growth rate is 31.84%.
Gasoline and motive fuel revenue for July was down 3.75% from July 2021, but was $3.1 million higher than the budget estimate of $107 million. For the year, revenue exceeded estimates by $53.8 million.
Motor vehicle registration revenue was $2.1 million higher than the July estimate, and year-to-date revenue is $22.7 million higher than the estimate.
Tobacco tax revenue was $2.9 million lower than the July budget estimate of $20.4 million. For the year, they are $7.7 million lower than the budget estimate.
Lien tax revenue was $22.4 million higher than the July estimate, and year-to-date August-July revenue is $196.2 million more than the estimate.
Business tax revenue topped the July estimate of $11.9 million by $1 million. For the year, revenues are $45.2 million higher than the budget estimate.
Taxes on mixed drinks, or liquor on the drink, were $5.9 million higher than the July estimate. For the year, revenues are $60 million higher than the budget estimate.
All other tax revenues exceeded estimates by a net amount of $1.1 million.
Year-to-date revenue, for 11 months, is $4.6 billion higher than the budgeted estimate. The general fund recorded $4.3 billion more than the budget estimate, and the other four funds recorded $261.8 million more than the estimate.
The budgeted revenue estimates for 2021-2022 are based on the consensus recommendation of the State Funding Board dated November 24, 2020 and adopted by the first session of the 112th General Assembly in April 2021. 2021 Session of the General Assembly. These estimates are available on the state website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.
On November 17, 2021, the State Finance Council met again to hear updated revenue projections from various state economists. Following this meeting, on November 23, 2021, the Board decided to adopt revised revenue growth ranges for the current fiscal year. The recurring growth ranges adopted include a minimum of 6.80% to a maximum of 7.45% for total taxes and a recurring range of 7.75% to a maximum of 8.50% for general fund taxes.
On April 21, during the second session of the 112th General Assembly, the Legislative Assembly passed the 2022-23 budget, which included the Funding Council’s revised revenue ranges for the current year. Upon passage, an additional $2.936 billion in total funds and $2.870 billion in general fund revenue were added to the initial budget estimates for this year. Public Chapter 1130, known as the Appropriations Bill, was signed by Governor Lee on June 1.