June Revenues

NASHVILLE - Tennessee Department of Finance and Administration Commissioner Jim Bryson today announced that revenues for June were $2.294 billion, which is $34.8 million more than June of last year, but $31.5 million less than the budgeted estimate. The total growth rate for the month was 1.54 percent.

"Total revenues in June showed positive gains compared to last year," Bryson said. "Sales tax receipts, reflecting May consumer activity, grew moderately. Similarly, corporate tax revenues (franchise and excise taxes) held steady compared to June 2023. All other taxes increased by 2.55% compared to this time last year.

"With one month remaining in this fiscal year, the state seems to be on track to meet the revised 2023-2024 growth rates adopted by the State Funding Board and enacted by the General Assembly. We are optimistic that we will achieve the revised estimate for the year."

On an accrual basis, June is the eleventh month in the 2023-2024 fiscal year.

General fund revenues were less than the budgeted estimates in the amount of $32.1 million, and the four other funds that share in state tax revenues were $0.6 million more than the estimates.

Sales tax revenues were $14.8 million less than the original estimate for June but were 2.23 percent more than June 2023. For eleven months, revenues are $138.9 million lower than estimated. The August through June growth rate is 1.70 percent.

Franchise and excise tax revenues combined were $14.1 million less than the budgeted estimate in June, and the growth rate compared to June of last year was negative 0.01 percent. For eleven months, revenues are $327.7 million less than the estimate and the year-to-date growth rate is negative 5.91 percent.

Gasoline and motor fuel revenues for June increased by 1.24 percent compared to June 2023, and they were $0.5 million more than the budgeted estimate of $111.1 million. For eleven months, revenues are more than estimates by $6.8 million.

Motor vehicle registration revenues were $1.3 million more than the June estimate, and on a year-to-date basis, revenues are $6.1 million more than the estimate.

Tobacco tax revenues were $2.3 million less than the June budgeted estimate of $18.7 million. For eleven months, they are $22.9 million less than the budgeted estimate.

Privilege tax revenues were $4.1 million less than the June estimate, and on a year-to-date basis, August through June, revenues are $117 million less than the estimate.

Business tax revenues were $0.2 million less than the June estimate of $13.9 million. For eleven months, revenues are $26.5 million more than the budgeted estimate.

Mixed drink, or Liquor-by-the-drink, taxes were $0.8 million more than the June estimate. For eleven months, revenues are $2.5 million more than the budgeted estimate.

All other tax revenues were more than estimates by a net of $1.4 million.

Year-to-date revenues, for eleven months, are $555.2 million less than the budgeted estimate. The general fund recorded $565.6 million less than the budgeted estimate, and the four other funds were $10.4 million more than estimated.

The budgeted revenue estimates for 2023-2024 are based upon the State Funding Board's consensus recommendation from November 28, 2022, and adopted by the first session of the 113th General Assembly in April 2023. Also incorporated in the estimates are any changes in revenue enacted during the 2023 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.

On November 6, 2023, the State Funding Board met again to hear updated revenue projections from various state economists. Following this meeting, on November 29, 2023, the board decided to adopt revised revenue growth ranges for the current fiscal year. The recurring growth ranges adopted include a low of negative 0.69 percent to a high of negative 0.19 percent for total taxes and a recurring range low of negative 0.50 percent to a high of 0.00 percent for general fund taxes.

On April 18, 2024, in the second session of the 113th General Assembly, the Legislature passed House Bill 2973/Senate Bill 2942, which included the Funding Board's revised revenue ranges for the current year. Upon passage, revenue estimates were revised lowered by $798.4 million for total funds and $718.8 million for general fund revenue. The appropriations bill, Public Chapter 966, was signed by Governor Lee on May 15, 2024.

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