Tennessee Department of Finance and Administration Commissioner Larry Martin announced today that revenues for December were $17.2 million higher than the $1.3 billion estimate for the month, but were 3 percent less than December 2017.
“December state tax revenues recorded positive growth compared to the budgeted estimate, despite being lower than December 2017,” Comm. Martin said. “It is difficult to compare this month’s receipts to last year due to the major tax overhaul of the federal ’Tax Cuts and Jobs Act of 2017’ (TCJA) and the effect it had on calendar year filers. Corporate franchise and excise taxes, along with Hall income tax receipts, were lower compared to last year, reflecting some of the impact from last year’s tax changes. However, sales tax revenue growth continues to report solid gains. The December sales tax revenues reflect retail activity that occurred in November, which includes Black Friday and after-Thanksgiving sales.”
Total revenues in December were $17.2 million more than the budgeted estimate. The general fund recorded revenues exceeding budgeted estimates by $10.1 million, and the four other funds that share in state tax revenues were $7.1 million more than estimates.
Sales tax revenues were $23.4 million more than the estimate for December. The December growth rate was 5.34 percent. For five months revenues are $136.2 million higher than estimated and the year-to-date growth rate is 6.27 percent.
Franchise and excise taxes combined were $18.3 million less than the December budgeted estimate. For five months revenues are less than estimates in the amount of $23.1 million or negative 5.83 percent compared to the same time period last year. However, adjusting for a one-time payment received in December 2017 the growth rate is positive 0.30 percent for the year.
Gasoline and motor fuel revenues for December increased by 7.44 percent and were $0.5 million less than the budgeted estimate of $96.2 million. For five months revenues are $7.0 million more than estimates.
Motor vehicle registration revenues were $3.7 million more than the December estimate, and on a year-to-date basis they are $16.1 million more than estimates.
Tobacco tax revenues were $0.8 million more than the budgeted estimate of $19.1 million. For five months revenues are $4.4 million less than estimated.
Privilege tax revenues were $5.3 million more than the budgeted estimate of $24.1 million. Year-to-date revenues for five months are $7.6 million more than the budgeted estimate.
Business tax revenues were $0.5 million more than the December estimate and $8.6 million more than estimates on a year-to-date basis.
Hall income tax revenues were near estimate at $2.6 million.
All other taxes for December recorded a net increase of $2.3 million compared to estimates.
Year-to-date revenues for five months were $154.2 million more than the budgeted estimate. The general fund recorded $128.8 in revenues more than estimates, and the four other funds $25.4 million more than estimates.
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.