(The Center Square) – Tennessee tax revenues were $2.2 billion in September, $20.6 million more than estimated, Department of Finance and Administration Commissioner Jim Bryson said Thursday.
Collections were also $1.3 million higher than the same month a year ago.
General fund revenues also exceeded expectations by $14.3 million, according to Bryson’s report.
“Sales tax revenues, which reflect August’s taxable sales activity, were slightly above estimates and showed solid growth compared to the same period last year,” Bryson said in a release. “However, corporate tax collections, or franchise and excise taxes, fell short of expectations. All other combined revenues exceeded estimates.”
Fuel taxes were also above estimates, according to the report.
Corporate taxes collections for September were below estimates by $10.3 million and down $40 million when compared to September 2024, according to the report.
A tax break for corporations passed by the General Assembly has been blamed for lower collections. Tennessee’s collections for fiscal year 2025 were down $75.2 million when compared to the previous year, according to the July revenue report. Corporate tax revenues were down $721 million.
Tennessee is in the second month of the 2025-2026 fiscal year. So far, sales taxes are $49.1 million above estimates, fuel taxes are $4.7 million higher and all other taxes are $8.9 million higher. The corporate tax revenues are below estimates by $26.6 million, according to the report.
“We are encouraged that overall revenues are aligning with our projections, but we will continue to monitor collections and spending carefully to ensure the budget remains balanced,” Bryson said.
