NASHVILLE, Tenn. – Department of Finance and Administration Commissioner Larry Martin today announced that Tennessee tax revenues were lower than budgeted estimates for the month of July. Overall, July revenues totaled $1.1 billion, which is $50.8 million more than the state collected in July of 2017, but $8.6 million less than the budgeted estimate for the month.
“Sales tax revenues recorded in July reveal healthy growth compared to the same time period last year and were higher than the month’s budgeted estimate,” Martin said. “State corporate tax revenues, composed of franchise and excise taxes, underperformed in the month against the budgeted estimate, as did all other tax revenue combined.
“While the month of July did not meet our budgeted expectations, the state will finish the 2017-2018 fiscal year exhibiting strong revenue growth thus exceeding the state’s conservative budgeted estimates. State revenues grew by 4.14 percent more than last year and are $343.9 million more than the established budgeted estimate. Adjusting for an additional $49.2 million added from the November 2017 funding board, total state revenues will actually finish $294.7 million more than the revised total revenue estimate. Similarly, state’s general fund revenues will have outperformed the original budget estimate by $303.7 million or by $276.4 million after adjusting for the revised estimate.”
On an accrual basis, July is the final month in the 2017-2018 fiscal year and reported revenues will be subject to final accrual adjustments that may increase or decrease the recorded cash amounts on an audited basis.
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 July 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 https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html