Tennessee revenues grew from the same month a year ago and were slightly more than the budgeted estimate for October.
Finance and Administration Commissioner Larry Martin reported that October revenues were $1.0 billion, which is $29.5 million more than October of last year and $3.2 million more than the budgeted estimate. The growth rate for October was 2.91%.
“October sales tax revenues, our best economic indicator, performed close to the budgeted monthly estimate and have continued to exhibit sound growth compared to last year,” Mr. Martin said. “Corporate tax revenues, or franchise and excise taxes, have also performed quite well in October.
“We will continue to proceed cautiously, and closely monitor our revenue and expenditure patterns for the balance of this fiscal year.”
On an accrual basis, October is the third month in the 2018-2019 fiscal year.
General fund revenues for October were $2.8 million more than the budgeted estimate, and the four other funds that share in state tax revenues were $0.4 million more than the budgeted estimates.
Sales tax revenues were $7.5 million more than the estimate for October. The October growth rate was 3.64%. The year-to-date growth rate was positive 5.65%.
Franchise and excise combined revenues for October were $59.5 million, which is $7.7 million more than the budgeted estimate of $51.8 million. The growth rate for October was 22.27%. The year-to-date growth rate was 2.26%.
Gasoline and motor fuel revenues increased by 0.87% and were $0.1 million less than the budgeted estimate of $69.3 million.
Motor Vehicle Registration revenue receipts decreased by 5.39% and they were $2.2 million less than the October estimate.
Tobacco tax revenues for the month were $4.2 million less than the budgeted estimate of $22.7 million. The growth rate for October was negative 18.47%.
Privilege tax revenues were $4.4 million less than the budgeted estimate of $32.7 million.
Business tax revenues were $0.4 million more than the budgeted estimate.
Hall income taxes were $2.7 million less than the October estimate.
All other tax revenues were greater than estimates by a net of $1.2 million.
Year-to-date revenues for three months were $91.0 million more than the budgeted estimate. The general fund exceeded estimates by $81.4 million and the four other funds that share in state tax revenues exceeded estimates by $9.6 million.
The budgeted revenue estimates for 2018-2019 are based on the State Funding Board’s consensus recommendation of November 27, 2017 and adopted by the second session of the 110th General Assembly in May 2018. Also incorporated in the estimates are any changes in revenue enacted during the 2018 session of the General Assembly. These estimates are available on the state’s website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.