Tennessee revenues for June hit $1.9 billion, $372.3 million above the budgeted monthly revenue estimate, the state Department of Finance and Administration said Monday.
On a year-over-year basis, state tax revenues were up $321.1 million from June 2020 while the overall growth rate was 20.9%.
“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,” Commissioner Butch Eley said in a statement.
On an accrual basis, June is the 11th month in the 2020-2021 fiscal 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,” Eley said. “Nevertheless, we remain steadfast in our commitment to continue to budget conservatively.”
General fund revenues came in $357.1 million more than the budgeted estimates.
Sales tax revenues were $173.2 million more than the estimate for June and were 22.6% more than June 2020. For 11 months of the fiscal year, revenues were $1.657 billion above estimates contributing to a year-to-date growth rate of 14.9%.
Remote sales and marketplace facilitator laws contributed $50.2 million to sales tax receipts for the month and for the year, online sales tax revenues represent 35.3% of all sales tax growth.
Franchise and excise tax revenues were $193.4 million above budget forecasts last month with a year-over-year growth rate of 45.1%. For 11 months, revenues were $1.044 billion over estimates with the year-to-date growth rate at 49.0%.
“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,” Eley said.
Gasoline and motor fuel revenues for June rose 18.4% compared with the same month last year and were $5 million above the budgeted estimate of $104.8 million. For the 11 months of the fiscal year, revenues were $6.1 million less than estimates. However, motor vehicle registration revenues were $900,000 above than estimates and on a year-to-date basis were $16.4 million above forecasts.
Tobacco tax revenues came in $1.1 million higher than the budgeted estimate of $20.3 million. For 11 months, they were $15.7 million above forecasts.
