State of Tennessee Revenues Report for November 2023

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NASHVILLE – Tennessee Department of Finance and Administration Commissioner Jim Bryson today announced that November revenues were less than budgeted estimates in November. Overall November state revenues were $1.426 billion, which is 4.38 percent less than November 2022 and $88.4 million less than the budgeted estimate.

“November revenues were less than estimates for the month partially due to the three-month sales tax holiday on food, which ended on October 31 but is reported in November’s tax collections,” Bryson said. “Corporate tax revenues, or franchise and excise taxes, were also lower with quarterly estimated tax payments from business entities decreasing from this same time last year.

“We continue to carefully monitor revenues for the year and remain committed to keeping expenditures in line with revenue collections.”

On an accrual basis, November is the fourth month in the 2023-2024 fiscal year.

General fund revenues for November were $87.5 million less than the budgeted estimate, and the four other funds that share in state tax revenues were $0.9 million less than the budgeted estimate.

Sales and use tax revenues were $13.6 million less than the estimate for November. The November growth rate was negative 0.26 percent. Year-to-date revenues are $15 million higher than estimated, and the growth rate is 1.05 percent.

Franchise and excise taxes combined revenues for November were $43.2 million, or $55.2 million less than the November budgeted estimate. For four months, revenues are $165.8 million less than estimated, and the growth rate is negative 13.57 percent.

Gasoline and motor fuel revenues decreased 1.38 percent compared to last November and were $1.4 million less than the budgeted estimate of $106.8 million. Year-to-date revenues are $3.6 million more than estimated.

Motor vehicle registration revenue receipts were $1.8 million more than the November estimate, but year-to-date revenues are $4.6 million less than estimated. Additionally, the four-month growth rate of 32.02 percent reflects the one-year registration renewal waiver that occurred during this same time last year.

Tobacco tax revenues were $14.3 million, or $3.6 million less than the budgeted estimate for the month.

Privilege tax revenues were $13.1 million less than the budgeted estimate of $46.1 million. For four months, revenues are $51.7 million less than estimated, and the growth rate is negative 18.55 percent.

Business tax revenues were $1.6 million less than the November estimate and year-to-date revenues are $0.4 million more than estimated.
Mixed drink, or liquor-by-the-drink, taxes were $0.3 million less than the November estimate, and on a year-to-date basis, revenues are $2.3 million more than the estimate.

All other tax revenues together were less than estimates by a net of $1.4 million.

Year-to-date revenues, for four months, were $197.3 million less than the budgeted estimate. The general fund was less than estimates by $202.2 million while the four other funds that share in state tax revenues exceeded estimates by $4.9 million.

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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