State of Tennessee Revenues Report for January 2024

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NASHVILLE – February 16, 2024 – Tennessee revenues for the month of January exceeded collections from January of 2023, but were less than the budgeted estimates. Finance and Administration Commissioner Jim Bryson today reported that tax revenues were $1.95 billion, which is $15.8 million more than January of last year, but $97.8 million less than the budgeted estimate. The total growth rate for the month was 0.82 percent.

“Total tax receipts for the month of January exceeded reported collections from last year, but performance against our monthly estimates continues to lag,” Bryson said. “State sales tax receipts, reflecting consumer spending during the December 2023 Christmas shopping season, grew modestly. Corporate taxes, or franchise and excise taxes, were less than this time last year, but were nearly in line with our estimates for the month. Furthermore, real estate mortgage tax collections, recorded within the privilege tax, continue to remain low as they were less than monthly estimates.  All other taxes combined were $5.4 million above our revenue estimates and increased 6.14 percent compared to January 2023.

“While we are encouraged to see some moderate revenue growth, we will continue to monitor economic activity and revenue trends to ensure fiscal stability.”

On an accrual basis, January is the sixth month in the 2023-2024 fiscal year.

General fund revenues were less than the budgeted estimates in the amount of $95.2 million, while the four other funds that share in state tax revenues were $2.6 million less than the estimates.

Sales tax revenues were $86.1 million less than the estimate for January and the growth rate was 0.98 percent. For six months, revenues are $72 million less than estimated and the year-to-date growth rate is 1.34 percent.

Franchise and excise tax revenues were $1.9 million less than the January budgeted estimate. The growth rate compared to January 2023 was negative 2.47 percent. Year-to-date franchise and excise tax revenues are 10.90 percent lower than this same time last year and $234.2 million less than estimated.

Gasoline and motor fuel revenues increased by 2.97 percent compared to January 2023 and were $1.5 million more than the budgeted estimate of $108.6 million. For six months, revenues are more than estimates by $3.7 million.

Motor vehicle registration revenues were $1.6 million more than the January estimate, but on a year-to-date basis are $3.1 million less than the estimate.

Tobacco tax revenues were $0.4 million less than the budgeted estimate of $15 million, and for six months are $9 million less than the budgeted estimate.

Privilege tax revenues were $15.3 million less than the January estimate, and on a year-to-date basis, August through January, revenues are $79 million less than the estimate.

Business tax revenues were $3.1 million more than the January estimate. For six months revenues are $1.2 million more than the budgeted estimate.

Mixed drink, or liquor-by-the-drink, taxes were $1 million more than the January estimate, and on a year-to-date basis, revenues are $4.1 million more than the budgeted estimate.

All other taxes were less than estimates by a net of $1.3 million.

Year-to-date total revenues are $377.7 million less than the budgeted estimate. General fund revenues are $378.8 million less than the estimate, and the four other funds total $1.1 million more than estimates. The growth rate for six months is negative 0.98 percent.

The budgeted revenue estimates for 2023-2024 are based upon the State Funding Board’s consensus recommendation from November 28, 2022, and adopted by the first session of the 113th General Assembly in April 2023. Also incorporated in the estimates are any changes in revenue enacted during the 2023 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.

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Source: TN Dept. of Finance

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