Tennessee has collected $2.5 billion in excess tax revenue so far this year
(The Center Square) — Tennessee has now collected $2.5 billion more in taxes and fees than expected through the first eight months of the fiscal year, according to figures released by Tennessee’s Department of Finance and Administration.
The state collected $1.6 billion in March, which is $348.8 million more than budgeted and $286.8 million more than last year.
“Of the $286.8 million in additional tax revenue, nearly 70 percent is attributed to growth in sales tax collections, based on February sales tax activity in all categories of industry,” said Finance and Administration Commissioner Butch Eley. “Specifically, building materials grew 33.99 percent, general merchandise retailers saw 15.22 percent growth, food stores grew 11.43 percent, auto dealers and service stations saw a 19.50 percent increase in sales taxes, apparel and accessory retailers grew 36.58 percent, home furnishing retailers grew 23.51 percent, restaurants and bars serving food grew 33.41 percent and sales tax receipts on taxable services grew 45.70 percent.”
Sales taxes were $196 million more than the March estimate and are $1.5 billion over estimates for the fiscal year while franchise and excise taxes collected were $114.6 more than budgeted for the month and $828.8 million more than budgeted for the fiscal year.
Excess collections go into the general fund and are often used in additional appropriations in the budget approved by the General Assembly.
“Aside from sales taxes, we saw notable growth in franchise and excise taxes, privilege taxes and motor vehicle registration fee receipts in March,” Eley said. “At this time, the large tax growth we have experienced in these first eight months of the fiscal year puts the state in a good position to meet and exceed budgeted revenue estimates within the next few months.
“Nevertheless, we will continue to closely monitor our monthly receipts, being mindful we are in an extremely inflated economy and a large number of uncertainties still exist.”
Privilege taxes, assessed to certain professions for licensing, were $13.3 million more than the monthly estimate and are $116.8 million over estimates for the year. Vehicle registrations were $10.4 million over for the month and are $12.5 million more than estimated for the fiscal year.
Mixed drink taxes were $5.3 million more than the monthly estimate and are now $32.4 million more than the yearly budgeted amount.
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