by Jon Styf
Tennessee has collected $2.3 billion more than budgeted in taxes and fees through the first 11 months of the fiscal year.
In June, the state collected $2.3 billion total, which was $283.3 million more than estimated and $38.7 million more than the June 2022 collections.
“June tax revenues grew at a modest pace but continue to demonstrate a deceleration of economic activity,” Tennessee Department of Finance and Administration Commissioner Jim Bryson (pictured above) said. “Growth from sale tax receipts, reflecting consumer activity from the month of May, led all tax categories for the month and was higher than the 1.6% reported national retail sales increase. Corporate tax revenues, or franchise and excise taxes, rose slightly from last June while all other tax categories taken together were lower by 2.22%.”
The largest amount of those collections come from sales tax, where it collected $1.2 billion in June compared to the $1.1 billion estimate. For the fiscal year, Tennessee has collected $12.6 billion in sales tax compared to an $11.3 billion estimate and $11.8 billion collected through 11 months of last fiscal year.
The taxes are up against the revised budget estimates, which increased the allowable money for budget appropriations by $2.7 billion for the fiscal year, meaning Tennessee still needs to beat its July collections by $400 million to hit that mark.
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Jon Styf is an award-winning editor and reporter of The Center Square who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies.
Well thought out answer. Using economics and common sense to inject some truth into a “Tax Holiday”. The State must think we’re all brain dead out here! Cut the taxes! Give us hard working and retired folk some financial air to breathe!
Dan
A tax refund would be unheard of I suppose? Or a tax reduction? Too simplistic I guess.
Rather than increase budget appropriations (spending) to match the increase in revenue, we should be considering lowering the sales tax rate (not just a tax holiday). As we know, lowering taxes grows the economy. Specifically in TN, where we have no income tax – so we rightly tax consumption not productivity – the lowering of the sales tax will increase the discretionary money held mainly by individuals and allow for increased individual savings and/or spending. In some instances it may mean the difference in whether a family can balance their individual budget.