(The Center Square) – Tennessee’s May revenues were $36 million above the budgeted estimate for this fiscal year and $56.4 million more than May of 2024, according to Finance and Administration Commissioner Jim Bryson.
The numbers rebounded from April when general fund revenue was $114 million less than estimated. Much of the decline was due to corporate tax breaks, Bryson’s office said in April.
The loss in corporate tax revenue was accounted for in the 2025 fiscal year budget, and the May collections are $13.33%, or $12.9 million above those estimates, according to the report.
A year-to-date comparison of corporate tax collections with the same time period last year shows corporate taxes are down 23.24% or $854.9 million.
The General Assembly passed a corporate franchise tax cut in 2024. More than 58,000 Tennessee businesses used the tax break.
A list posted on the Tennessee Department of Revenue’s site shows 15,868 received a tax break of more than $10,000; 33,376 businesses received between $751 to $10,000; and 9,240 businesses received $750 or less.
Overall May tax growth for the Volunteer State was 3.43%, according to the monthly revenue report.
Sales tax collections exceeded forecasts by 2.55% or $31.3 million.
“May’s total tax receipts exceeded our budgeted expectations, driven primarily by strong sales tax collections,” Bryson said. “Corporate tax revenues – specifically franchise and excise taxes – also outperformed projections. We will exercise continued diligence in monitoring revenues and expenditures to secure a balanced financial close to the fiscal year.”
