The Tennessee Department of Finance and Administration announced Friday that overall June state tax revenues exceeded budgeted estimates. On an accrual basis, June is the 11th month in the 2021-2022 fiscal year.
Revenues for June totaled $2.2 billion, which is $547.9 million more than the budgeted monthly revenue estimate, according to a press release by the department. State tax revenues were $364.3 million more than June 2021, and the overall growth rate was 19.63 percent.
The department notes the general fund revenues were more than the budgeted estimates in the amount of $518.8 million, and the four other funds that share in state tax revenues were $29.1 million more than the estimates.
The following numbers are reported as presented in the press release by the Tennessee Department of Finance and Administration:
- Sales tax revenues were $264.4 million more than the estimate for June and 17.33 percent more than June 2021. For eleven months, revenues are $2.3 billion higher than estimated. The August through June growth rate is 16.03 percent.
- Franchise and excise tax revenues combined were $239.5 million greater than the budgeted estimate in June, and the growth rate compared to June 2021 was 24.98 percent. For eleven months, revenues are $1.7 billion more than the estimate and the year-to-date growth rate is 32.46 percent.
- Gasoline and motor fuel revenues for June increased by 1.46 percent compared to June 2021, and they were $4.1 million more than the budgeted estimate of $107.2 million. For eleven months, revenues are greater than estimates by $50.7 million.
- Motor vehicle registration revenues were $2.9 million more than the June estimate, and on a year-to-date basis, revenues are $20.6 million more than the estimate.
- Tobacco tax revenues were $3.1 million less than the June budgeted estimate of $21.0 million. For eleven months, they are $4.8 million less than the budgeted estimate.
- Privilege tax revenues were $27.6 million more than the June estimate, and on a year-to-date basis, August through June, revenues are $173.9 million more than the estimate.
- Business tax revenues were $2.5 million more than the June estimate of $11.1 million. For eleven months, revenues are $44.2 million more than the budgeted estimate.
- Mixed drink, or Liquor-by-the-drink, taxes were $7.8 million more than the June estimate. For eleven months, revenues are $54.0 million more than the budgeted estimate.
According to the department, all other tax revenues were more than estimated by a net of $2.2 million.
“After experiencing slower year-over-year growth in the month of May, growth has rebounded to the levels seen during most of fiscal year 2021-2022, driven primarily by sales and corporate tax receipts,” Department of Finance and Administration Commissioner Jim Bryson said in a statement. “Of the $547.9 million in revenue above estimates, 48 percent is attributed to growth in sales tax collections while 43 percent is due to the growth in franchise and excise taxes. The June figures also capture $20 million in professional privilege tax payments that had been shifted from May.”
Bryson continued, “With one month of revenue reporting remaining in the 2021-2022 fiscal year, the state is on track to outperform the revenue estimates set for the year. Nevertheless, we remain steadfast in our commitment to closely watch economic conditions, especially as inflation remains high, eroding much of the gain in overall revenues.”
According to the press release, year-to-date revenues for 11 months are $4.3 billion more than the budgeted estimate. The general fund recorded $4.0 billion more than the budgeted estimate, and the four other funds were $238.2 million more than estimated.
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network.