Despite the COVID-19 pandemic, Tennessee state revenue collections last month were up 7.84% from December 2019, Department of Finance and Administration Commissioner Butch Eley said Monday.
“Total tax revenues for December exhibited remarkable growth compared to last year and were boosted by gains from both sales and corporate tax receipts,” Eley said. “The state’s sales tax, representing November taxable sales and the early holiday shopping season, continues to signify strong consumer activity during the ongoing pandemic.”
Corporate taxes also rose significantly over this same time last year, he said, adding that almost 87% of the growth came from increased quarterly estimated tax payments. He said the upcoming January revenue report will fully capture consumer spending for the Christmas 2020 holiday season.
“While revenue collections continue to look promising, we will persist in monitoring our revenues and expenditures throughout the remainder of this fiscal year,” he said. December is the fifth month in the state’s 2020-2021 fiscal year.
Total revenues in December were $1.507 billion, $156 million more than the budget estimate of $1.351 billion, the finance department said. General fund revenues at $1.297 billion exceeded estimates by $158.4 million while the four other funds that share in state tax revenues were $2 million less than estimates.
For the first five months of the fiscal year, revenues were 6.562 billion, $732.8 million more than the budgeted estimate of $5.829 billion. The general fund recorded $715.5 million in revenues more than estimates while the four other funds came in $17.3 million above estimates. The year-to-date growth for the first five months is 3.38%, the department said.
The budgeted revenue estimates for fiscal 2020-2021 are based on the State Funding Board’s consensus recommendation of November 2019 and adopted by the second session of the 111th General Assembly in June 2020. It incorporates any change in revenue enacted during the 2020 Assembly session.
