Tennessee’s revenue was above budget estimates for the first month of the state’s fiscal year. Finance and Administration Commissioner Jim Bryson reported on Friday August 16 that August revenue was $1.5 billion, up $100.6 million from August 2021 and 130 $.5 million more than budget estimates.
The growth rate for all taxes in August was 7.12%.
“Monthly tax receipts were substantial for the first month of this fiscal year, but were well below the 22.11% growth recorded in August of last year,” Bryson said.
“Sales and use taxes, representing July’s taxable sales activity, was the largest contributor to monthly growth and fell in line with July national retail sales growth reported at 10.3%. There was a drop in motor vehicle registration fees compared to August last year, mainly due to the new one-year registration renewal waiver for Class A drivers and class B.
“In addition, a loss of $1.7 million in lien tax growth can be attributed to a reduction in real estate and mortgage transactions due to rising interest rates.
“As state tax collections begin to moderate from last year’s extraordinary growth, we will continue to carefully monitor the economy and consumer demand to ensure we meet our monthly budget estimates. “
According to accrual accounting, August is the first month of fiscal year 2022-2023.
General fund revenue was $117.2 million higher than the August estimate. The other four funds that share state tax revenue were $13.3 million more than estimated.
Sales tax revenue was $118.4 million higher than the August estimate. The growth rate for August was 10.01%.
Franchise and excise taxes combined were $11.3 million higher than the budget estimate of $80.1 million; however, the growth rate was negative at 3.5%.
Gasoline and motive fuel revenue increased 1.83% from August 2021, but was $0.3 million below the budgeted estimate of $109.2 million.
Motor vehicle registration revenue topped the August estimate of $19.9 million by $0.6 million.
Tobacco tax revenue for the month exceeded budget estimates by $2.4 million.
Lien tax revenue for the month of August was $5.9 million lower than the month’s estimate of $50.3 million.
Business tax revenue was $5.7 million higher than the August estimate of $6.6 million.
All other tax revenue was lower than estimated by a net amount of $1.7 million.
The budgeted revenue estimates for 2022-23 are based on the consensus recommendation of the State Financing Council of November 23, 2021 and adopted by the second session of the 112th General Assembly in April 2022.
Also incorporated into the estimates are the revenue changes adopted at the 2022 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.
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