Tennessee revenues for October exceeded revenues from the same month a year ago, but were marginally less than the budgeted estimate. Finance and Administration Commissioner Larry Martin reported today that October revenues were $1.0 billion, which is $31.1 million more than October of last year and $1.3 million less than the budgeted estimate. The growth rate for October was 3.16%.
"All in all, October revenue results were mixed. Sales taxes, our best economic indicator, grew at a relatively modest rate while corporate revenues, realized from our franchise and excise taxes, recorded negative growth," Martin said. "This is not alarming and is a normal occurrence in Tennessee's business tax cycle. October is the month when corporate calendar year filers that filed a six month due date extension are allowed to request a refund. It is also the month in which corporations reconcile their books relative to their actual tax obligation.
"While our revenue trends continue to reflect moderate growth, we must proceed cautiously, and closely monitor our revenue and expenditure patterns for the balance of this fiscal year. We are committed to keeping Tennessee's budget balanced."
On an accrual basis, October is the third month in the 2017-2018 fiscal year.
General fund revenues for October were $8.7 million less than the budgeted estimate, and the four other funds that share in state tax revenues were $7.4 million more than the budgeted estimates.
Sales tax revenues were $4.2 million more than the estimate for October. The October growth rate was 2.62%. The year-to-date growth rate was positive 3.51%.
Franchise and excise combined revenues for October were $48.6 million which is $13.8 million less than the budgeted estimate of $62.4 million. The growth rate for October was negative 26.58%. The year-to-date growth rate was negative 6.03%.
Gasoline and motor fuel revenues increased by 36.82% and they were $7.9 million more than the budgeted estimate of $90.3 million.
Motor Vehicle Registration revenues increased by 7.93% and they were $0.5 million less than the October estimate.
Tobacco tax revenues for the month were comparative to the budgeted estimate.
Privilege tax revenues were $2.0 million more than the budgeted estimate of $29.6 million.
Inheritance and Estate taxes were $1.2 million more than the October estimate.
Business tax revenues were $0.1 million less than the October estimate.
Hall income taxes were $2.7 million less than the October estimate.
All other tax revenues exceeded estimates by a net of $0.5 million.
Year-to-date revenues for three months were $42.7 million more than the budgeted estimate. The general fund exceeded estimates by $21.4 million and the four other funds that share in state tax revenues exceeded estimates by $21.3 million.
The budgeted revenue estimates for 2017-2018 are based on the State Funding Board's consensus recommendation of November 29, 2016 and adopted by the first session of the 110th General Assembly in May 2017. Also incorporated in the estimates are any changes in revenue enacted during the 2017 session of the General Assembly. These estimates are available on the state's website at http://www.tn.gov/finance/article/fa-budget-rev.