NASHVILLE – Tennessee Department of Finance and Administration Commissioner Jim Bryson today announced that revenues for June were $2.3 billion, which is $283.3 million more than the budgeted monthly revenue estimate. State tax revenues were $38.7 million more than June 2022 and the overall growth rate was 1.74 percent.
“June tax revenues grew at a modest pace but continue to demonstrate a deceleration of economic activity,” Bryson said. “Growth from sale tax receipts, reflecting consumer activity from the month of May, led all tax categories for the month and was higher than the 1.6 percent reported national retail sales increase. Corporate tax revenues, or franchise and excise taxes, rose slightly from last June while all other tax categories taken together were lower by 2.22 percent.”
On an accrual basis, June is the eleventh month in the 2022-2023 fiscal year.
General fund revenues were more than the budgeted estimates in the amount of $267.5 million and the four other funds that share in state tax revenues were $15.8 million more than the estimates.
Sales tax revenues were $133.1 million more than the estimate for June and 3.18 percent more than June 2022. For eleven months, revenues are $1.3 billion higher than estimated. The August through June growth rate is 7.17 percent.
Franchise and excise tax revenues combined were $127.5 million greater than the budgeted estimate in June, and the growth rate compared to June 2022 was 1.21 percent. For eleven months, revenues are $827.1 million more than the estimate and the year-to-date growth rate is 5.88 percent.
Gasoline and motor fuel revenues for June decreased by 1 percent compared to June 2022, and they were $1.5 million less than the budgeted estimate of $111.7 million. For eleven months, revenues are less than estimates by $4 million.
Motor vehicle registration revenues were $3 million more than the June estimate, and on a year-to-date basis, revenues are $35.1 million more than the estimate.
Tobacco tax revenues were $3.2 million less than the June budgeted estimate of $20.7 million. For eleven months, they are $15.6 million less than the budgeted estimate.
Privilege tax revenues were $11.3 million more than the June estimate, and on a year-to-date basis, August through June, revenues are $68.6 million less than the estimate.
Business tax revenues were $0.2 million more than the June estimate of $11.5 million. For eleven months, revenues are $74.1 million more than the budgeted estimate.
Mixed drink, or Liquor-by-the-drink, taxes were $5.9 million more than the June estimate. For eleven months, revenues are $62.1 million more than the budgeted estimate.
All other tax revenues were more than estimates by a net of $7 million.
Year-to-date revenues, for eleven months, are $2.3 billion more than the budgeted estimate. The general fund recorded $2.1 billion more than the budgeted estimate and the four other funds were $188.8 million more than estimated.
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.
On November 21, 2022, the State Funding Board met again to hear updated revenue projections from various state economists. Following this meeting, on November 28, 2022, the board decided to adopt revised revenue growth ranges for the current fiscal year. The recurring growth ranges adopted include a low of 6.82 percent to a high of 7.27 percent for total taxes and a recurring range low of 7.20 percent to a high of 7.70 percent for general fund taxes.
On April 20, 2023, in the first session of the 113th General Assembly, the Legislature passed House Bill 1545/Senate Bill 1532, which included the Funding Board’s revised revenue ranges for the current year. Upon passage, an additional $2.7 billion ($2,711,200,000) in total funds and $2.6 billion ($2,588,600,000) in general fund revenue were added to this year’s original budgeted estimates. Public Chapter 418, known as the appropriations bill, was signed by Governor Lee on May 16, 2023.
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