Tennessee revenues exceeded budgeted estimates for the month of May. Finance and Administration Commissioner Jim Bryson on Monday reported that total May tax revenues were $1.7 billion, $36 million more than the budgeted estimate and $56.4 million more than May 2024. The total tax growth rate for the month was 3.43 percent.
General fund revenues were $40.1 million more than the May estimate, and the four other funds that share in state tax revenues were $4.1 million less than the estimates.
"May’s total tax receipts exceeded our budgeted expectations, driven primarily by strong sales tax collections,” Commissioner Bryson said. “Corporate tax revenues—specifically franchise and excise taxes—also outperformed projections. We will exercise continued diligence in monitoring revenues and expenditures to secure a balanced financial close to the fiscal year.”
On a year-to-date basis, August through May, total tax revenues are 0.51 percent less than the budget estimate, or $92.1 million less than expectations. When compared to this same period last year, total tax revenues have decreased by $277.5 million or 1.53 percent.
General fund revenues are 0.66 percent less than the year-to-date budgeted estimate, or $100.9 million. Likewise, year-to-date general fund collections compared to this same period last year have decreased 1.32 percent or $202.2 million.
Individual tax performance compared to May 2025 Budgeted Estimates:
Sales Taxes: Above estimate by 2.55 percent or $31.3 million
Corporate Taxes (Franchise & Excise): Above estimate by 13.33 percent or $12.9 million
Fuel Taxes: Below estimate by 5.35 percent or $5.9 million
All other taxes: Below estimate by 1.00 percent or $2.3 million
Year-to-date performance compared to Budgeted Estimates:
Sales Taxes: Above estimate by 0.97percent or $116.2 million
Corporate Taxes (Franchise & Excise): Below estimate by 10.25 percent or $322.3 million
Fuel Taxes: Below estimate by 0.28 percent or $3.0 million
All other taxes: Above estimate by 6.70 percent or $117.0 million
Individual tax performance compared to May 2024:
Sales Taxes: Up 5.11 percent or $61.1 million
Corporate Taxes (Franchise & Excise): Up 3.77 percent or $4.0 million
Fuel Taxes: Down 1.72 percent or $1.8 million
All other taxes: Down 2.93 percent or $6.9 million
Individual tax performance compared to August 2023 through May 2024:
Sales Taxes: Up 4.56 percent or $528.6 million
Corporate Taxes (Franchise & Excise): Down 23.24 percent or $854.9 million
Fuel Taxes: Up 0.56 percent or $5.9 million
All other taxes: Up 2.36 percent or $42.9 million
The budgeted revenue estimates for 2024–2025 are based on the State Funding Board’s consensus recommendation from Nov. 29, 2023, which was adopted by the second session of the 113th General Assembly in May 2024. These estimates also incorporate any revenue changes enacted during the 2024 General Assembly session. Monthly estimates for fiscal year 2024–2025 are available on the state’s website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.
On Nov. 25, 2024, the State Funding Board met once again and recommended updated revenue projections for the 2024–2025 fiscal year. The Board adopted revised revenue growth ranges of negative 1.68 percent to negative 1.34 percent for total taxes and negative 2.50 percent to negative 1.91 percent for general fund revenues. The Board’s projected upper limit and the growth outlined in Governor Lee’s budget proposal for the first session of the 114th General Assembly reflect no changes to the current Department of Revenue’s state tax revenue estimates for the 2024–2025 fiscal year.