September Revenues

NASHVILLE - Tennessee revenues exceeded budgeted estimates for the month of September. Finance and Administration Commissioner Jim Bryson today reported that total September tax revenues were $2.2 billion, $101.2 million more than the budgeted estimate and $18.9 million more than September 2023. The total tax growth rate for the month was 0.87 percent.

General fund revenues were $95.3 million more than the September estimate and the four other funds that share in state tax revenues were $5.9 million more than the estimates.

On an accrual basis, September is the second month in the 2024-2025 fiscal year.

"September's sales tax receipts indicate strong consumer activity, with corporate tax revenues exceeding expectations," Bryson said. "Adjusting for last year's forgone revenue, sales tax receipts rose by 3.4 percent and surpassed the monthly estimate. Corporate tax revenues-franchise and excise taxes-though besting budgeted expectations, fell short of last year's collections. This decline was expected, as corporate tax receipts are anticipated to be lower throughout the year because of tax cuts included within the 2023 Tennessee Works Tax Act and the removal of the property measure from levied franchise taxes. All other taxes exceeded the budgeted estimates for the month."

On a year-to-date basis, August through September, total tax revenues are 2.81 percent greater than the budget estimate, or $102.6 million above expectations. When compared to this same period last year, total tax revenues have grown 1.50 percent or $55.2 million.

General fund revenues are 2.97 percent greater than the year-to-date budgeted estimate, or $88.7 million higher. Likewise, general fund collections compared to this same period last year have increased 1.60 percent or $48.3 million.

Individual tax performance compared to September 2024 Budgeted Estimates:

· Sales Taxes: Above estimate by 3.70% or $43.8 million

· Corporate Taxes (Franchise & Excise): Above estimate by 7.35% or $47 million

· Fuel Taxes: Below estimate by 0.17% or $0.2 million

· All other taxes: Above estimate by 6.62% or $10.6 million

Year-to-date performance compared to Budgeted Estimates:

· Sales Taxes: Above estimate by 1.96% or $47.1 million

· Corporate Taxes (Franchise & Excise): Above estimate by 3.95% or $27.6 million

· Fuel Taxes: Above estimate by 0.88% or $1.9 million

· All other taxes: Above estimate by 8.10% or $25.9 million

Individual tax performance compared to September 2023:

· Sales Taxes: Up 8.22% or $93.3 million

· Corporate Taxes (Franchise & Excise): Down 9.23% or $69.8 million

· Fuel Taxes: Down 4.26% or $5 million

· All other taxes: Up 0.19% or $0.3 million

Individual tax performance compared to August through September 2023:

· Sales Taxes: Up 5.65% or $131.1 million

· Corporate Taxes (Franchise & Excise): Down 10.09% or $81.6 million

· Fuel Taxes: Down 1.52% or $3.4 million

· All other taxes: Up 2.72% or $9.1 million

The budgeted revenue estimates for 2024-2025 are based upon the State Funding Board's consensus recommendation from November 29, 2023, and adopted by the second session of the 113th General Assembly in April 2024. Also incorporated in the estimates are any changes in revenue enacted during the 2024 session of the General Assembly. All monthly estimates are available on the state's website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.

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