Tennessee has collected $1.3B more in taxes than estimated for fiscal year
Published 12:09 pm Monday, March 27, 2023
By: Jon Styf, The Center Square
Tennessee has now collected $1.3 billion more in taxes and fees than were budgeted for the fiscal year, which just completed its seventh month.
While increases have slowed, the state still collected $88.3 million more in February than it did in February 2022. Overall, that was $1.3 billion in total collections in February.
The largest portion of collections was $1 billion in sales and use taxes, above the $905,000 that was budgeted for the month. For the year, sales tax collections are $868.9 million more than the state budgeted.
“February’s positive revenue gains are primarily due to strong sales tax growth,” Tennessee Department of Finance and Administration Commissioner Jim Bryson said. “Sales tax revenues, reflecting consumer spending from January, recorded the largest monthly growth to date in the current fiscal year. Conversely, corporate tax receipts and privilege tax revenues were strikingly lower compared to last February, while all other revenues combined grew 5.4 percent.
“As we proceed through the remainder of the fiscal year, we will continue to cautiously monitor our revenue and expenditure patterns to ensure fiscal balance.”
Gasoline and motor fuel tax was down from a year ago and privilege tax collections were $12.9 million less than the February estimate. Business and tobacco tax were nearly even with estimates while franchise and excise tax revenues combined were $11.5 million less than the February budgeted estimate.