Tennessee Department of Finance and Administration Commissioner Larry Martin announced Thursday that overall November state revenues were $957.3 million, which is 5.55 percent more than November 2016, but $4.1 million less than the budgeted estimate.
“Overall November revenues posted positive gains compared to the same time period one year ago,” Commissioner Martin said. “Sales tax revenues, reflecting consumer spending occurring in October, recorded moderate growth for the month and were also in excess of the budgeted estimate. Franchise and excise taxes also recorded positive growth; however, all other revenue sources combined were marginally less than the budgeted estimate for November, creating an overall deficit from the budgeted estimate.
“While we continue to see revenue growth that is moderate, we must watch closely revenue trends and adjust spending if revenue growth weakens.”
General fund revenues for November were $6.3 million less than the budgeted estimate, and the four other funds that share in state tax revenues were $2.2 more than the budgeted estimate.
Sales tax revenues were $4.3 million more than the estimate for November. The November growth rate was 3.96 percent. The year-to-date growth rate was 3.62 percent.
Franchise and excise taxes combined revenues for November were $30.3 million, which is $5.4 million less than the budgeted estimate of $35.7 million. The growth rate for November was positive 182.95 percent. The year-to-date growth rate was negative 2.17 percent.
Gasoline and motor fuel revenues increased by 8.73 percent and they were $2.0 million less than the budgeted estimate of $92.8 million.
Motor Vehicle Registration revenues increased by 23.62 percent and were $3.2 million more than the budgeted estimate.
Tobacco tax revenues for the month were $5.3 million less than the budgeted estimate.
Gross receipts tax revenues for November were $0.5 million more than the estimate.
Privilege tax revenues were $2.2 million more than the budgeted estimate of $24.1 million.
Inheritance and Estate taxes recorded refunds of $2.9 million and were $3.2 million less than estimated.
Business tax revenues were $0.5 million more than the November estimate.
All other tax revenues exceeded estimates by a net of $1.1 million.
Year-to-date revenues for four months were $38.6 million more than the budgeted estimate. The general fund exceeded estimates by $15.1 million and the four other funds that share in state tax revenues exceeded estimates by $23.5 million.
The budgeted revenue estimates for 2017-2018 are based on the State Funding Board’s consensus recommendation of Nov. 29, 2016 and adopted by the first session of the 110th General Assembly in May 2017. Also incorporated in the estimates are any changes in revenue enacted during the 2017 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.