Tennessee Department of Finance and Administration Commissioner Butch Eley recently announced that revenues for June were $1.9 billion, which is $372.3 million more than the budgeted monthly revenue estimate. State tax revenues were $321.1 million more than June 2020 and the overall growth rate was 20.92%.
“June collections in the sales tax and corporate taxes, which are the franchise and excise taxes, continue to reflect extraordinary increases compared to this time last year when economic activity was weakened because of the pandemic,” Eley said. “When comparing June 2021 tax growth to June 2019, the monthly growth is 18.61%.
“Growth from sales and use tax revenues, reflecting taxable sales activity from the month of May, were supported by a return of consumer spending, heightened inflationary costs and sustained increases from online and remote retail activity. Corporate tax collections also surpassed the month’s budget estimate with year-to-date corporate tax growth now surpassing a billion dollars. All other tax revenues, taken together, were lower than June 2020 primarily because of monthly tax filing shifts that occurred last year.
“With one month of revenue reporting remaining in the 2020-2021 fiscal year, the state will outperform the revenue estimates set for the year and should put the state in a good position to fund the 2021-2022 fiscal year. Nevertheless, we remain steadfast in our commitment to continue to budget conservatively.”
Trousdale County also saw a good month of tax collections, collecting $329,495.02 in state sales tax and $145,006.07 in local option sales tax in June. Both were up from $318,918.84 (up 3.3%) and $136,834.20 (up 5.97%) in June 2020.
Trousdale also took in $468.06 in income tax, $33,290.86 in motor vehicle tax, $39,699.53 in realty transfer & mortgage tax and $346.80 in business tax during June.
On an accrual basis, June is the 11th month in the 2020-2021 fiscal year.
General fund revenues were more than the budgeted estimates in the amount of $357.1 million and the four other funds that share in state tax revenues were $15.2 million more than the estimates.
Sales tax revenues were $173.2 million more than the estimate for June and were 22.64% more than June 2020. For 11 months, revenues are $1,656.9 million higher than estimated. The year-to-date growth rate is 14.86%.
Year-to-date revenues for 11 months were $2,816.9 million more than the budgeted 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 thae 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-bud get-information/fa-budget-rev.html.