Tennessee Department of Finance and Administration Commissioner Jim Bryson Thursday announced that February tax revenues exceeded budgeted estimates. February revenues totaled $1.3 billion, which is $88.3 million more than the state received in February 2022 and $128.4 million more than the budgeted estimate. The growth rate for February was 7.11 percent.
“February’s positive revenue gains are primarily due to strong sales tax growth,” Comm. Bryson said. “Sales tax revenues, reflecting consumer spending from January, recorded the largest monthly growth to date in the current fiscal year.
Conversely, corporate tax receipts and privilege tax revenues were strikingly lower compared to last February, while all other revenues combined grew 5.4 percent.
“As we proceed through the remainder of the fiscal year, we will continue to cautiously monitor our revenue and expenditure patterns to ensure fiscal balance.”
General fund revenues exceeded the budgeted estimates in the amount of $98.9 million while the four other funds that share in state tax revenues were $29.5 million more than the estimates.
Sales tax revenues were $138.9 million more than the estimate for February and 11.83 percent more than February 2022. For seven months, revenues are $868.9 million higher than estimated. The year-to-date growth rate for seven months was 9.14 percent.
Franchise and excise tax revenues combined were $11.5 million less than the February budgeted estimate. For seven months, revenues are $383.2 million more than the estimate and the year-to-date growth rate is 13.27 percent.
Gasoline and motor fuel revenues for February decreased by 0.79 percent compared to February 2022 and were $1.2 million less than the February budgeted estimate of $98.3 million. For seven months, revenues are less than estimates by $7.8 million.
Motor vehicle registration revenues were $4.6 million more than the February estimate, and on a year-to-date basis they are $24.3 million more than estimates.
Tobacco taxes were nearly even with the February budgeted estimate of $16.6 million. For seven months, tobacco tax revenues are $6.9 million less than the budgeted estimate.
Privilege taxes were $12.9 million less than the February estimate. Year-to-date, privilege tax revenues are $38.9 million less than estimated and growth is negative 19.99 percent.
Business taxes were $0.2 million more than the February estimate. For seven months, revenues are $15.7 million more than the budgeted estimate.
Mixed drink, or liquor-by-the-drink, taxes were $5.4 million more than the February estimate, and on a year-to-date basis, revenues are $37.6 million more than the budgeted estimate.
All other tax receipts were more than estimates by a net of $4.9 million.
Year-to-date revenues for seven months were $1.3 billion more than the budgeted estimate. The general fund recorded $1.2 billion in revenues more than estimates, and the four other funds totaled $121.6 million more than year-to-date estimates.
The budgeted revenue estimates for 2022-2023 are based upon the State Funding Board’s consensus recommendation from November 23, 2021 and adopted by the second session of the 112th General Assembly in April 2022. Also incorporated in the estimates are any changes in revenue enacted during the 2022 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.