(The Center Square) – Tennessee finished the fiscal year collecting more than $22 billion in taxes and fees, which was $2.5 billion ahead of the state’s original budgeted estimate for the year.
The total was up $1 billion from a year before but growth slowed near the end of the fiscal year.
In July, the state finished $153 million ahead of the budgeted estimate and $46.3 million ahead of last year.
“Annual revenues for fiscal year 2022-2023 exceeded our original budgeted estimates, but totals fell short of the funding board’s revised estimate from last fall,” said Tennessee Department of Finance and Administration Commissioner Jim Bryson. “Although collections were lower, this presents no issue in closing the fiscal year. A combination of expenditure savings and unanticipated surpluses from other state revenue sources will balance the year. Any further concerns will be addressed in our next budget proposal.”
Tennessee ended the fiscal year $252 million behind the revised budgeted totals used in this year’s budget.
The state collected $13.8 billion in sales and used taxes for the fiscal year, nearly $1.5 billion above what was budgeted. In July, sales and use tax collections were $1.2 billion of the $1.7 billion in total collections and sales and use taxes exceeded what was budgeted by $129 million.
“Monthly gains were led by sales tax receipts reflecting June consumer activity and corporate tax payments,” Bryson said. “When combined, all other tax revenues declined compared to July 2022.”
