NASHVILLE – Department of Finance and Administration Commissioner Jim Bryson today announced that Tennessee tax revenues exceeded budgeted estimates in March. Overall March revenues totaled $1.67 billion, which is $55.1 million, or 3.42 percent more than the state received in March of 2023 and $17.6 million more than the budgeted estimate for the month.
“March sales tax revenues, reflecting February consumer activity, recorded solid growth for the month,” Bryson said. “Most of the month’s tax growth came from retail activity, fuel consumption, and motor vehicle registration which boosted total tax collections and represented a slight rebound from last month’s depressed tax receipts. We will continue to monitor economic activity and revenue trends to ensure fiscal stability.”
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On an accrual basis, March is the eighth month in the 2023-2024 fiscal year. General fund revenues were $10.8 million more than the budgeted estimate while the four other funds that share in state tax revenues were $6.8 million more than the estimates.
Sales tax revenues were $49.8 million more than the estimate for March and were 6.30 percent more than March 2023. For eight months revenues are $66.1 million less than estimated. The year-to-date growth rate for eight months was 1.56 percent.
Franchise and excise tax revenues combined were $23.2 million less than the budgeted estimate in March and the growth rate was negative 6.66 percent. For eight months, revenues are $258.9 million less than the estimate and the year-to-date growth rate is negative 9.82 percent.
Gasoline and motor fuel revenues for March increased by 7.40 percent compared to March 2023 and were $6.1 million more than the budgeted estimate of $85.5 million. For eight months, fuel tax revenues are $4.1 million more than the budgeted estimate.
Motor vehicle registration revenues were $1 million less than the March estimate, and through eight months are $0.6 million more than budgeted.
Tobacco tax revenues were $4.7 million less than the March budgeted estimate of $19 million. For eight months, revenues are $13.9 million less than the year-to-date budgeted estimate.
Privilege tax revenues were $7.1 million less than the March estimate. On a year-to-date basis, August through March, revenues are $99.5 million less than the estimate.
Business tax revenues were $2.9 million less than the March estimate. For eight months, revenues are $0.3 million more than the budgeted estimate.
Mixed drink, or liquor-by-the-drink, taxes were $0.4 million more than the March estimate, and on a year-to-date basis, revenues are $2.9 million more than the budgeted estimate.
All other taxes were more than budgeted estimates by a net of $0.2 million.
Year-to-date revenues, August through March, are $420 million less than the budgeted estimate. The growth rate for eight months is negative 0.40 percent. General fund revenues are $430.4 billion less than the budgeted estimate and the four other funds are $10.4 million more than estimated.
The budgeted revenue estimates for 2023-2024 are based upon the State Funding Board’s consensus recommendation from November 28, 2022, and adopted by the first session of the 113th General Assembly in April 2023. Also incorporated in the estimates are any changes in revenue enacted during the 2023 session of the General Assembly. These estimates are available on the state’s website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budgetrev.html.
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