Lewis County Herald - Serving Hohenwald, Lewis County Tennessee Since 1898

Tennessee Department of Finance and Administration Commissioner Butch Eley announced that revenues for June were $1.5 billion, which is $12.5 million less than the budgeted monthly revenue estimate. State tax revenues were $29.8 million less than June 2019 and overall collections for the month represented a negative growth rate of 1.91 percent.

“Tennesseans are cautiously increasing business and consumer activities as we move forward in an unprecedented environment,” Eley said. “We anticipated a slow recovery from April, when everyone was staying at home, but it’s too early to identify any patterns in revenue collections. It should be noted that a sizable percentage of June revenue receipts are supported by a shift in tax burden from business, privilege and motor vehicle registration tax payments which were delayed to help provide support during the early phases of the pandemic. The state will not know the full impact of the pandemic on fiscal year 2020 until the close of the fiscal year next month when corporate tax and Hall income tax filings are due.

General fund revenues were greater than the budgeted estimates in the amount of $6.3 million, while the four other funds that share in state tax revenues were $18.8 million less than the estimates.

Sales tax revenues were $13.7 million less than the estimate for June and they were 1.27 percent less than June 2019. June sales tax revenues reflect retail business activity that occurred in May. For eleven months, revenues are $56.4 million higher than estimated. The year-to-date growth rate for eleven months is 2.57 percent.

Franchise and excise tax revenues combined were $40.5 million lower than the June budget estimate and the growth rate was negative 12.72 percent. For eleven months, revenues are $292 million less than the estimate and the year-to-date growth rate is negative 15.69 percent.

Gasoline and motor fuel revenues for June decreased by 10.24 percent compared to June 2019, and they were $16.3 million less than the budgeted estimate of $109 million. For eleven months, revenues have fallen behind estimates by $15.8 million.

Motor vehicle registration revenues $0.1 million more than the June estimate, and on a year-to-date basis, revenues are $10.8 million less than the estimate.

Tobacco tax revenues were $0.1 million more than the June budgeted estimate of $21.6 million. For eleven months, they are $0.4 million less than the budgeted estimate.

Hall income tax revenues for June were $5.7 million more than the budgeted estimate. For eleven months, revenues are $47.2 million less than the budgeted estimate.

Privilege tax revenues were $10 million more than the June estimate, and on a year-to-date basis, August through June, revenues are $15.2 million more than the estimate.

Business tax revenues were $49.8 million more than the June estimate. For eleven months, revenues are $7.4 million more than the budgeted estimate.

Mixed drink, or Liquor-by-the-drink, taxes were $8.1 million less than the June estimate, and on a year-to-date basis, revenues are $16.8 million less than the estimate.

All other tax revenues exceeded estimates by a net of $0.4 million.