Tennessee tax revenues exceeded budgeted estimates in February. Department of Finance and Administration Commissioner Larry Martin on Thursday announced that overall February revenues were $846.7 million, which is $28.4 million more than the state received in February 2016 and $21.1 million more than the state budgeted. The overall growth rate for February was 3.48 percent.
“The state experienced better sales tax revenues than expected for February,” Commissioner Martin said. “Receipts were in excess of the budgeted estimate. Franchise and Excise taxes recorded negative growth for the month and were also less than budgeted estimates. Nonetheless, the strong sales tax growth pushed total revenues for the month higher than budget expectations.”
General fund revenues were more than the budgeted estimates in the amount of $8.4 million while the four other funds that share in state tax revenues were $12.7 million more than the estimates.
Sales taxes were $32.9 million more than the estimate for February and 6.47 percent more than February 2016. For seven months revenues are $218.7 million higher than estimated. The year-to-date growth rate for seven months was 4.04 percent.
Franchise and excise taxes combined were $16.6 million less than the budgeted estimate in February and the growth rate over February 2016 was negative 16.50 percent. For seven months revenues are $267.0 million more than the estimate and the year-to-date growth rate is 21.31 percent. However, adjusting for one-time payments received in the current year reduces the year-to-date underlying growth rate to 2.76 percent.
Gasoline and motor fuel revenues for February decreased by 8.10 percent compared to February 2016 and were $1.7 million less than the budgeted estimate of $68.4 million. For seven months revenues have exceeded estimates by $26.6 million.
Motor vehicle registration revenues were $1.2 million more than the February estimate, and on a year-to-date basis they are $11.1 million more than the estimates.
Tobacco taxes were $2.9 million more than the February budgeted estimate of $20.6 million. For seven months they are $3.1 million more than the budgeted estimate.
Inheritance and estate taxes were $0.3 million more than the February estimate. On a year-to-date basis, revenues for seven months are $4.0 million more than the budgeted estimate.
Privilege taxes were $0.4 million more than the February estimate and on a year-to-date basis August through February revenues are $4.1 million more than the estimate.
Business taxes were $0.7 million less than the February estimate. For seven months revenues are $8.0 million more than the budgeted estimate.
Hall income tax revenues for the month were $1.0 million more than the budgeted estimate.
All other tax receipts exceeded estimates by a net of $1.4 million.
Year-to-date revenues for seven months were $545.7 million more than the budgeted estimate. The general fund recorded $491.3 million more than the budgeted estimates and the four other funds $54.4 million.
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.