Tennessee tax revenues were above budgeted estimates for January. Finance and Administration Commissioner Larry Martin on Tuesday announced that overall January revenues, driven by a very large one-time franchise and excise tax payment, were $1.4 billion. Total revenues were $169.1 million more than the state budgeted and 10.54 percent more than revenues received in January of last year.
“Adjusting the January recorded revenues for the substantial one-time payment reduces the underlying growth rate for total tax revenues from 10.54 percent to 1.90 percent,” Commissioner Martin said. “Sales tax revenues recorded growth slightly in excess of the budgeted estimates as sales tax growth returned to a now-normal level.”
General fund revenues were more than the budgeted estimates in the amount of $158.9 million while the four other funds that share in state tax revenues were $10.2 million more than the estimates.
Sales tax revenues were $54.8 million more than the estimate for January and 4.03 percent more than January 2016. For six months revenues are $185.8 million higher than estimated. The year-to-date growth rate for six months was 3.71 percent.
Franchise and excise taxes combined were $100.6 million more than the January budgeted estimate and the growth rate compared to January 2016 was 45.06 percent. This month’s revenues, as mentioned above, include a very large one-time payment. Adjusting revenues for this payment reduces the underlying growth rate for the month to negative 11.91 percent. Year-to-date revenues for the first six months of this year are $283.5 million more than estimate and the unadjusted growth rate was 23.28 percent. Adjusting for the one-time payments received last month and this month reduces the underlying year-to date growth to 3.55 percent.
Gasoline and motor fuel revenues for January increased by 14.66 percent compared to January 2016 and were $9.2 million more than the budgeted estimate of $71.7 million. For six months revenues have exceeded estimates by $28.3 million.
Tobacco taxes were $2.4 million more than the budgeted estimate of $19.0 million, and for six months they are $0.2 million more than the budgeted estimate.
Inheritance and estate taxes fell short of estimates by $1.0 million for the month. Year-to-date revenues for six months are $3.6 million more than the budgeted estimate.
Privilege taxes were $1.5 million more than the January estimate, and on a year-to-date basis, August through January, revenues are $3.7 million more than the estimate.
Business taxes were $1.7 million more than the January estimate. For six months revenues are $8.7 million more than the budgeted estimate.
Hall income tax revenues were $0.8 million less than the budgeted estimate.
All other taxes were above estimates by a net of $0.7 million.
Year-to-date revenues, including the two substantial one-time franchise and excise payments, were $524.6 million more than the budgeted estimate. The general fund recorded $483.0 million above budgeted estimates and the four other funds that share in state tax revenues were $41.6 million in excess of the estimates.
The budgeted revenue estimates for 2016-2017 are based on the State Funding Board’s consensus recommendation of Nov. 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.