Tennessee continues to collect revenue at a rate far outpacing projections
According to the Tennessee Department of Finance and Administration's most recently-released revenue numbers, the State of Tennessee has collected $1.5 billion above its revenue projections for the current fiscal year. These numbers put the state on track to have a total surplus in excess of $2 billion.
“March sales tax receipts and corporate tax revenues outperformed budgeted expectations and led all tax growth for the month,” Finance and Administration Commissioner Jim Byson said. “A careful examination of monthly retail sales tax collections reveals growth in all categories except building materials, which was lower by 3.76 percent, and the furniture and home furnishings category, which was 9.76 percent lower than the same time last year. Strong growth from state business taxes and mixed drink taxes also aided in the month’s outperformance.
Bryson said he was optimistic that current growth trends will continue through the end of the fiscal year on June 30th.
“We continue to be pleased with the overall tax growth for this fiscal year and we are anxiously awaiting to see April tax receipts. Historically, about 13 percent of our yearly revenue collections occur in the month of April, as nearly one-fourth of our yearly corporate franchise and excise tax receipts are remitted in the month. Therefore, we will continue to closely monitor our monthly tax revenues and remain cautiously optimistic.”
Specifically, March revenues were roughly 10% higher than the budgeted estimate. Revenue forecasts are used for budget planning purposes, with surplus dollars carried over into the following year's funds available for budgeting.
Comments / 2