The Tennessee Department of Finance and Administration announced Friday that overall January state tax revenues exceeded budgeted estimates. On an accrual basis, January is the sixth month in the 2021-2022 fiscal year.
Revenues for January totaled $1.8 billion, which is $309.2 million more than budgeted and 8.92 percent greater than revenues received in January 2021.
General fund revenues were greater than the budgeted estimates in the amount of $287.1 million, while the four other funds that share in state tax revenues were $22.1 million more than the estimates, according to a press release by the department.
The following numbers are reported as presented in the press release by the Tennessee Department of Finance and Administration:
- Sales tax revenues were $178.9 million more than the estimate for January and the growth rate was 7.77 percent. For six months, revenues are $1.1 billion higher than estimated. The year-to-date growth rate for six months is 18.04 percent.
- Franchise and excise tax revenues were $89.8 million more than the January budgeted estimate. The growth rate compared to January 2021 was 10.40 percent. Year-to-date franchise and excise tax revenues for the first six months of this year are 35.77 percent higher than this same time last year and $679.2 million more than estimated.
- Gasoline and motor fuel revenues increased by 5.10 percent compared to January 2021 and were $6.8 million more than the budgeted estimate of $102.5 million. For six months, revenues are more than estimates by $28.5 million.
- Motor vehicle registration revenues were $1.5 million more than the January estimate, and on a year-to-date basis exceed estimates by $9.1 million.
- Tobacco tax revenues were $2.5 million less than the budgeted estimate of $17.6 million, and for six months they are $0.5 million less than the budgeted estimate.
- Privilege tax revenues were $27.2 million more than the January estimate, and on a year-to-date basis, August through January, revenues are $89.1 million more than the estimate.
- Business tax revenues were $2.1 million more than the January estimate. For six months revenues are $2.7 million more than the budgeted estimate.
- Hall income tax revenues were $0.5 million more than the budgeted estimate.
- Mixed drink, or liquor-by-the-drink, taxes were $5 million more than the January estimate, and on a year-to-date basis, revenues are $23.6 million more than the budgeted estimate.
All other taxes were less than estimates by a net of $0.1 million.
“Total tax growth for the month January was strong, however it was notably less than the near 22 percent growth the state experienced in the first five months of this fiscal year,” Tennessee Department of Finance and Administration Commissioner Butch Eley said in a statement. “Monthly growth from sales tax receipts, reflecting consumer spending during the December 2021 Christmas shopping season, remained resilient though a large part of the growth was most likely attributable to price inflation on goods sold. Corporate taxes, or franchise and excise taxes, privilege taxes and mixed drink taxes, also significantly exceeded their estimates for the month. All other taxes combined exceeded the month’s estimates by 2.19 percent.”
According to the press release, year-to-date revenues for six months were $1.94 billion more than the budgeted estimate. The general fund recorded $1.81 billion in revenues more than estimates, and the four other funds totaled $125 million more than year-to-date estimates.
– – –
Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network.