Tennessee tax revenues in February grew 6.79 percent compared with February 2019, the Department of Finance and Administration announced.
Tax revenue for February was a little more than $1 billion – which was $64.8 million more than was collected in February 2019.
“As expected, revenue growth for the month of February exceeded budget projections,” Department of Finance and Administration Commissioner Stuart McWhorter said in a news release. “Sales tax receipts, reflecting January consumer activity, outpaced budgeted expectations as did all other taxes combined.”
Fiscal-year-to-date tax revenues for Tennessee are $8.9 billion, an 8 percent year-over-year increase. On an accrual basis, February is the seventh month in the 2019-2020 fiscal year.
Sales and use tax revenue totaled $734 million, a 7.58 percent increase compared with February 2019. For seven months, revenues are $237.7 million higher than estimated at $5.9 billion.
Franchise and excise tax revenues collected from businesses were $51 million for the month, about a 1 percent dip compared with February 2019. For seven months, franchise and excise tax revenue is $1.3 billion – a 17 percent year-over-year increase.
“It should be noted that the administration is closely monitoring current and future economic activity due to the COVID-19 outbreak,” McWhorter said. “We fully expect to realize an impact in the coming months. However, at this time, year-to-date tax revenue growth continues to outpace budgeted estimates which should allow the state to mitigate any future decrease to monthly collections.”
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Reported by staff writers at The Center Square.