Tennessee revenues were more than the budgeted estimates for the first month of the state’s fiscal year. Finance and Administration Commissioner Butch Eley reported that August revenues were $1.2 billion, which is $22 million more than August 2019, and $115.1 million more than the budgeted estimates. The growth rate for all taxes in August was 1.94%.
“Tennessee revenues exceeded expectations for the month and exhibited modest gains compared to August 2019,” Eley said. “Consumer activity for the month of July, reflected in August’s sales tax receipts, continued to outperform expectations as federal stimulus resources remained a large part of the state’s strong performance. While tax receipts from building material suppliers, food stores, furniture and home appliance retailers have increased significantly compared to last year; apparel stores, many small retailers, restaurants and bars continue to experience losses due to decreased sales activity.
“State corporate taxes, which are the franchise and excise taxes, decreased compared to last year; however, they exceeded estimates for the month. All other taxes were closely aligned with our August estimates.
“While we are pleased with the positive start to the 2020-2021 fiscal year, we will remain cautiously optimistic and continue to monitor economic activity and revenue trends to ensure fiscal stability.”
Sales tax collections were increased in Trousdale County during August, with the county collecting $320,869.05 in state sales tax and $128,136.29 in local sales tax. Both were up respectively from $294,671.87 (up 8.89%) and $98,114.77 (up 30.59%) in August 2019.
Trousdale County also collected $330 in income tax, $35,187.77 in motor vehicle tax, $27,530.63 in realty transfer & mortgage tax and $89,882.79 in business tax during August.
On an accrual basis, August is the first month in the 2020-2021 fiscal year.
General fund revenues were $108.6 million more than the August estimate.
The budgeted revenue estimates for 2020-2021 are based on the State Funding Board’s consensus recommendation of Nov. 26, 2019 and adopted by the second session of the 111th General Assembly in June 2020. Also incorporated in the estimates are any changes in revenue enacted during the 2020 session of the General Assembly. These estimates are available on the state’s website at tn.gov/content/tn/finance/fa/fa-budget-infor mation/fa-budget-rev.html.