Tennessee Department of Finance and Administration Commissioner Butch Eley announced Tuesday that revenues for April were less than the monthly revenues from the previous year. according to the department’s press release.
Overall state revenues for April were $1.3 billion, which is a negative growth rate of 39.75 percent compared to last year and $693.8 million less than the state budgeted, the press release said.
“The signs of economic downturn due to the COVID-19 pandemic have begun to appear in Tennessee’s April tax receipts,” Eley said.
“April sales tax revenues, reflecting March taxable sales activity, were weakened as the state began to withdraw from its usual patterns of consumer spending by mid-month. Franchise and excise tax receipts, along with Hall income and business taxes are also notably reduced due to filing extensions that will allow individuals and businesses to report their taxable activity later in the year. It has been 10 years since an economic downturn has impacted state revenues. The state’s large monthly revenue surpluses built up throughout the beginning of the year will now be tested as the pandemic’s impact begins to erase those gains. Yet, we remain committed to keeping the state’s budget in balance despite the current challenges.”
The Tennessee Department of Revenue extended the due date for certain taxes on April 6, 2020. On an accrual basis, April is the ninth month in the 2019-2020 fiscal year, the press release said.
“General fund revenues were less than budgeted estimates by $650.9 million, while the four other funds that share in state tax revenues were $42.9 million less than the estimates. Sales tax revenues were $61.2 million less than the estimate for April and they were 6.01 percent less than April 2019. For nine months, revenues are $182.4 million higher than estimated. The year-to-date growth rate for nine months is 4.83 percent,” the press release aid.
“Franchise and excise tax revenues combined were $486.6 million lower than the budgeted estimate in April, and the growth rate compared to April 2019 was negative 70.61 percent. For nine months, revenues are $249.2 million lower than the estimate and the year-to-date growth rate is negative 16.50 percent. Gasoline and motor fuel revenues for April decreased by 1.4 percent compared to April 2019 and they were $5.6 million less than the budgeted estimate of $108.7 million. For nine months revenues are more than estimated by $33.4 million.”
Motor vehicle registration revenues were $10.8 million less than the April estimate, and on a year-to-date basis they are $1.6 million less than estimates. Tobacco tax revenues were $3.2 million less than the April budgeted estimate of $18.8 million. For nine months, they are $1.3 million more than the budgeted estimate. Mixed drink taxes were $7.4 million less than the budgeted estimate of $12.5 million, the press release said.
“Hall Income Tax revenues for April were $62 million less than the budgeted estimate. For nine months, revenues are $55.5 million less than the budgeted estimate. Privilege tax revenues were $7.2 million less than the April estimate, and on a year-to-date basis, August through April, revenues are $34.4 million more than the estimate,” according to the press release.
“Business tax revenues were $50.4 million less than the April estimate. For nine months, revenues are $41 million less than the budgeted estimate. All other tax revenues exceeded estimates by a net of $0.6 million. Year-to-date revenues, August through April, are $88.1 million less than the budgeted estimate. The growth rate for nine months is negative 0.89 percent. General fund revenues are $164.2 million less than the budgeted estimate and the four other funds are $76.1 million more than estimated.”
– – –
Chris Butler is an investigative journalist at The Tennessee Star. Follow Chris on Facebook. Email tips to [email protected].
