Tennessee revenues exceeded budgeted estimates for the month of July. Department of Finance and Administration Commissioner Jim Bryson reported that total July tax revenues were $1.8 billion, $125.5 million more than the budgeted estimate and $134 million more than July 2024. The total tax growth rate for the month was 7.87 percent.
General fund revenues were $130.3 million more than the July estimate, and the four other funds that share in state tax revenues were $4.8 million less than the estimates.
“Tax revenue growth in July exceeded expectations," Comm.
Bryson said. "A rise in corporate quarterly estimated tax payments and higher-than-expected gross receipts tax collections boosted overall monthly revenues. Sales tax revenues, though higher than in the same month last year, came in just below July’s estimate. All other taxes combined finished slightly above projections.
“I’m pleased to report that Tennessee has exceeded its revenue estimates for the year. Final receipts will be subject to accruals, but the outlook remains strong.”
For fiscal year 2024-2025, August through July, total tax revenues are 0.94 percent more than the budget estimate, or $206.5 million more than forecasted. When compared to this same period last year, total tax revenues decreased by $75.2 million or 0.34 percent.
General fund revenues for the fiscal year are 1.08 percent more than the year-to-date budgeted estimate, or $201 million. Likewise, year-to-date general fund collections compared to this same period last year increased 0.12 percent or $23.4 million.
Individual tax performance compared to July 2025 Budgeted Estimates:
o Sales Taxes: Below estimate by 0.67 percent or $8.6 million;
o Corporate Taxes (Franchise & Excise): Above estimate by 90.28 percent or $117.6 million
o Fuel Taxes: Below estimate by 4.19 percent or $4.8 million; and
o All other taxes: Above estimate by 11.29 percent or $21.2 million.
Year-to-date performance compared to Budgeted Estimates:
o Sales Taxes: Above estimate by 0.79 percent or $114.9 million;
o Corporate Taxes (Franchise & Excise): Below estimate by 1.38 percent or $53.6 million;
o Fuel Taxes: Below estimate by 0.71 percent or $9.2 million; and
o All other taxes: Above estimate by 7.20 percent or $154.3 million.
Individual tax performance compared to July 2024:
o Sales Taxes: Up 2.71 percent or $33.6 million;
o Corporate Taxes (Franchise & Excise): Up 78.39 percent or $109.0 million;
o Fuel Taxes: Down 3.76 percent or $4.3 million; and
o All other taxes: Down 2 percent or $4.3 million.
Individual tax performance compared to August 2023 through July 2024:
o Sales Taxes: Up 4.24 percent or $596 million;
o Corporate Taxes (Franchise & Excise): Down 15.84 percent or $721.5 million;
o Fuel Taxes: Up 0.26 percent or $3.3 million; and
o All other taxes: Up 2.08 percent or $46.9 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 July 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.