December Tennessee Revenues Exceed Budgeted Amounts

  • Thursday, January 16, 2025

Tennessee revenues exceeded budgeted estimates for the month of December. Finance and Administration Commissioner Jim Bryson reported Thursday that total December tax revenues were $1.9 billion, $39.7 million more than the budgeted estimate but $21.0 million less than December 2023.

General fund revenues were $36.7 million more than the December estimate, and the four other funds that share in state tax revenues were $3.0 million more than the estimates.

"December's total tax receipts surpassed our budgeted expectations for the month," Commissioner Bryson said. "Sales tax revenues, reflecting November's taxable sales activity, slightly exceeded our monthly estimates and demonstrated notable growth compared to this same time last year. Corporate tax receipts, or franchise and excise taxes, also outperformed our December expectations.

"We are pleased that tax revenues are aligning closely with our expectations. However, we will maintain careful oversight of future revenues and expenditures to ensure we stay balanced."

On a year-to-date basis, August through December, total tax revenues are 0.21 percent less than the budget estimate, or $17.7 million less than expectations. When compared to this same period last year, total tax revenues have decreased by $15.3 million or 0.18 percent.

General fund revenues are 0.55 percent less than the year-to-date budgeted estimate, or $38.9 million lower. Likewise, year-to-date general fund collections compared to this same period last year have remained nearly flat with $0.3 million in growth.

Individual tax performance compared to December 2024 Budgeted Estimates:

Sales Taxes: Above estimate by 0.46% or $5.4 million
Corporate Taxes (Franchise & Excise): Above estimate by 5.90% or $25.7 million
Fuel Taxes: Above estimate by 1.75% or $1.9 million
All other taxes: Above estimate by 4.64% or $6.7 million
Year-to-date performance compared to Budgeted Estimates:

Sales Taxes: Above estimate by 1.56% or $92.9 million
Corporate Taxes (Franchise & Excise): Below estimate by 12.92% or $163.0 million
Fuel Taxes: Above estimate by 0.66% or $3.6 million
All other taxes: Above estimate by 6.39% or $48.9 million
Individual tax performance compared to December 2023:

Sales Taxes: Up 3.23% or $37.3 million
Corporate Taxes (Franchise & Excise): Down 12.59% or $66.6 million
Fuel Taxes: Up 3.58% or $3.7 million
All other taxes: Up 3.14% or $4.6 million
Individual tax performance compared to August through December 2023:

Sales Taxes: Up 5.66% or $324.3 million
Corporate Taxes (Franchise & Excise): Down 24.92% or $364.7 million
Fuel Taxes: Up 0.89% or $4.8 million
All other taxes: Up 2.55% or $20.3 million

The budgeted revenue estimates for 2024-2025 are based upon the State Funding Board’s consensus recommendation from Nov. 29, 2023, and adopted by the second session of the 113th General Assembly in April 2024. Also incorporated in the estimates are any changes in revenue enacted during the 2024 session of the General Assembly. All monthly estimates are available on the state’s website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.

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