Tennessee Department of Finance and Administration Commissioner Stuart McWhorter Monday announced that revenues for April exceeded the monthly revenues from the previous year. Overall state revenues for April were $2.15 billion, which is a growth of 10.92 percent more than last year and $258.9 million more than the state budgeted.
“April’s total tax revenues were surprisingly strong and well above the state’s budgeted estimate,” Commissioner McWhorter said. “While we saw only modest growth in sales and use taxes, which account for nearly 60 percent of the state’s revenue, we experienced significantly higher than expected growth in corporate taxes, Hall income taxes and business taxes. All other taxes taken together performed above estimate as well.
“With three months remaining in the 2018-2019 fiscal year, it is anticipated that state revenues will exceed the budgeted estimate. Nevertheless, we will continue to monitor our monthly tax receipts closely, being mindful that economic conditions may change.”
General fund revenues exceeded budgeted estimates by $238.1 million, while the four other funds that share in state tax revenues were $20.8 million more than the estimates.
Sales tax revenues were $9.5 million more than the estimate for April and they were 3.13 percent more than April 2018. April sales tax revenues reflect retail business activity that occurred in March. For nine months, revenues are $222.3 million higher than estimated. The year-to-date growth rate for nine months was 5.46 percent.
Franchise and excise tax revenues combined were $183.7 million higher than the budgeted estimate in April, and the growth rate compared to April 2018 was positive 19.08 percent. For nine months, revenues are $170.4 million more than the estimate and the year-to-date growth rate is 6.41 percent. However, adjusting for the one-time payments received last fiscal year and this fiscal year produces a positive year-to-date underlying growth rate of 9.45 percent.
Gasoline and motor fuel revenues for April increased by 11.3 percent compared to April 2018 and they were $3.6 million more than the budgeted estimate of $101 million. For nine months revenues are more than estimated by $4.9 million.
Tobacco tax revenues were $1.6 million less than the April budgeted estimate of $20.5 million. For nine months, they are $7.2 million less than the budgeted estimate.
Hall income tax revenues for April were $45.6 million more than the budgeted estimate. For nine months, revenues are $47.5 million more than the budgeted estimate.
Privilege tax revenues were $6.4 million more than the April estimate, and on a year-to-date basis, August through April, revenues are $11.9 million more than the estimate.
Business tax revenues were $9.6 million more than the April estimate. For nine months, revenues are $23.1 million more than the budgeted estimate.
All other tax revenues exceeded estimates by a net of $2.1 million.
Year-to-date revenues, August through April, are $510.4 million more than the budgeted estimate. The growth rate for eight months is 4.64 percent. General fund revenues are $462.4 million more than the budgeted estimate and the four other funds are $48 million more than estimated.
The budgeted revenue estimates for 2018-2019 are based on the State Funding Board’s consensus recommendation of Nov. 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.