The Tennessee Department of Finance and Administration announced Friday that revenues for December 2021 were higher than expected and exceeded the monthly revenues from the previous year. On an accrual basis, December is the fifth month in the 2021-2022 fiscal year.
State revenues for December were $1.9 billion or $437.2 million more than the budgeted estimate with growth of 24.2% from December 2020. General fund revenues were more than the budgeted estimates in the amount of $411.3 million and the four other funds that share in state tax revenues were $25.9 million more than the estimates, according to the press release.
The following numbers are reported as presented in the press release by the Tennessee Department of Finance and Administration:
- Sales tax revenues were $214 million more than the estimate for December. The December growth rate was 24.49%. For the first five months of this fiscal year, revenues are $923.6 million higher than estimated, and the year-to-date growth rate is 20.83%.
- Franchise and excise taxes combined were $188 million more than the December budgeted estimate. Year-to-date revenues exceed estimates in the amount of $589.4 million, or 42.09% more than the same period last year.
- Gasoline and motor fuel revenues increased by 10.61%compared to last December and were $7.6 million more than the budgeted estimate of $97.8 million. For five months revenues are $21.7 million more than estimates.
- Motor vehicle registration revenues were $2.7 million more than the December estimate and on a year-to-date basis they are $7.6 million more than estimates.
- Tobacco tax revenues were $0.8 million more than the budgeted estimate of $19.9 million. For five months revenues are $2 million more than estimated.
- Privilege tax revenues were $17.4 million more than the budgeted estimate of $28.5 million. Year- to-date revenues for five months are $62 million more than the budgeted estimate.
- Business tax revenues were $1.9 million more than the December estimate and $0.6 million more than estimates on a year-to-date basis. Mixed drink, or liquor-by-the-drink, taxes were $5 million more than the December estimate, and on a year-to-date basis, revenues are 95.05% higher than last year.
All other taxes for December recorded a net decrease of $0.2 million compared to estimates, the press release states.
“December tax revenues exceeded budget estimates due to strong sales tax growth, corporate tax growth and realty tax collections included within privilege taxes,” Tennessee Department of Finance and Administration Commissioner Butch Eley said in a statement. “Sales tax receipts, reflecting November retail sales activity, continue to benefit from a surge in consumer demand and the established marketplace facilitator law. In addition, it is estimated that some portion of retail purchasing may have shifted from December to November due to reports of supply chain disruptions. Next month’s January revenue report will fully capture consumer spending for the 2021 holiday season.”
“While revenue collections continue to look promising, we will persist in closely monitoring our revenues and expenditures throughout the remainder of this fiscal year,” Eley continued.
According to the press release, year-to-date revenues for five months were $1.626 billion more than the budgeted estimate. The general fund recorded $1.523 billion in revenues more than estimates, and the four other funds recorded $102.9 million more than estimates. Year-to-date growth for the first five months is 21.8%.
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network. Email tips to [email protected]
This is an every month event. The question is: When are our taxes going to be cut?