State revenue was $150M over estimates in December

News release from Department of Finance and Administration

NASHVILLE, Tenn. – Tennessee revenues for December exceeded the same month one year ago.  Finance and Administration Commissioner Larry Martin reported today that state revenues for December were $1.2 billion, which is a growth of 11.33% and $125.5 million more than December 2015.

“Total revenues in December were higher than expected due to collections in the sales and corporate tax categories. Recorded revenues in the corporate category for December include a substantial one-time payment,” Martin said. “December sales tax revenues reflect retail activity that occurred in November including ‘Black Friday’ and after-Thanksgiving sales. January’s report will capture consumer spending for the Christmas holiday season.

On an accrual basis, December is the fifth month in the 2016-2017 fiscal year.

Total revenues in December were $150.1 million more than the budgeted estimate. The general fund recorded revenues more than budgeted estimates in the amount of $147.9 million, and the four other funds that share in state tax revenues were $2.2 million over estimates.

Sales tax revenues were $16.8 million more than the estimate for December.  The December growth rate was 3.40%. For five months revenues are $131.0 million higher than estimated, and the year-to-date growth rate is 3.62%.

Franchise and excise taxes combined, including the one-time substantial payment, were $130.7 million more than the December budgeted estimate. For five months revenues are more than estimates in the amount of $182.9 million.

Gasoline and motor fuel revenues for December decreased by 3.12% and they were $1.0 million less than the budgeted estimate of $73.3 million.  For five months revenues are $19.1 million more than estimates.

Motor vehicle registration revenues were $2.3 million more than the December estimate, and on a year-to-date basis they are $9.4 million more than estimates.

Tobacco tax revenues were $3.5 million less than the budgeted estimate of $21.0 million. For five months revenues are $2.1 million less than estimated.

Privilege tax revenues were $1.0 million more than the budgeted estimate of $21.4 million. Year-to-date revenues for five months are $2.2 million more than the budgeted estimate.

Inheritance and estate taxes were more than estimate by $0.2 million for the month. For five months revenues are $4.7 million more than the budgeted estimate.

Business tax revenues were $2.0 million more than the December estimate, and $7.1 million more than estimates on a year-to-date basis.

Hall income tax revenues were $1.0 million more than the budgeted estimate.

All other taxes for December recorded a net increase of $0.6 million compared to estimates.

Year-to-date revenues for five months were $355.5 million more than the budgeted estimate. The general fund recorded $324.0 in revenues more than estimates, and the four other funds $31.5 million over estimates.

The budgeted revenue estimates for 2016-2017 are based on the State Funding Board’s consensus recommendation of November 23, 2015 and adopted by the second session of the 109th General Assembly in April 2016. Also incorporated in the estimates are any changes in revenue enacted during the 2016 session of the General Assembly. These estimates are available on the state’s website at http://www.tn.gov/finance/article/fa-budget-rev.

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