(The Center Square) – Tennessee’s tax revenues were $2.2 billion in September, $101.2 million above budgeted forecasts, according to the Tennessee Department of Finance and Administration.
The bright spots are sales taxes, up $43.8 million above estimates and corporate taxes, $47 million higher than forecast.
Corporate tax collections are down $69.8 million when compared to September of last year. The decline was more significant when comparing August and September numbers with the same period in 2024. The collections were down $81.6 million, a 10.9% drop. For accruals, September is the second month in the fiscal year, according to the department.
The downward trend was expected, according to Finance and Administration Commissioner Jim Bryson.
“September’s sales tax receipts indicate strong consumer activity, with corporate tax revenues exceeding expectations,” Bryson said. “Adjusting for last year’s forgone revenue, sales tax receipts rose by 3.4% and surpassed the monthly estimate. Corporate tax revenues – franchise and excise taxes – though besting budgeted expectations, fell short of last year’s collections. This decline was expected, as corporate tax receipts are anticipated to be lower throughout the year because of tax cuts included within the 2023 Tennessee Works Tax Act and the removal of the property measure from levied franchise taxes.”
The state collected $18.9 million more in revenues in September than last year. The tax growth rate for September is 0.87%.
General fund revenues are $95.3 million above estimates, while other funds are $5.9 million higher, according to the department.
The revenue collections during the first two months of the fiscal year are 2.81% or $102.6 million more than budgeted.
