NASHVILLE, Tenn. — Tennessee's bank account grew by $1.5 billion over July from taxes, exceeding official estimates by $286.6 million.
According to Butch Eley, the Tennessee Department of Finance and Administration commissioner, most of the additional funds came from sales taxes. The General Fund grew the most out of all the state's different budgets, which is used to fund several state programs and initiatives.
Tax revenues on manufactured goods and franchise taxes both grew. Combined, they were $12.3 million more than the budgeted estimate. However, those kinds of tax revenues were significantly smaller compared to July 2020.
State leaders extended tax deadlines in 2020 due to the pandemic, which gave businesses more time to pay their taxes and led to smaller revenues compared to what the state reported last year.
Revenues from gasoline and other kinds of fuel taxes increased by 8.7% compared to July 2020 and were $8.2 million more than the budgeted estimate.
Taxes on tobacco sales also exceeded the state's estimates by $1.1 million, and liquor-by-the-drink estimates were also $2 million higher than expected.
Income taxes were also less than the budgeted estimates, and officials said the state brought in $151,000 less than expected this year.
July is the final month of the 2020-2021 fiscal year, and as it ends state officials said the reported revenues could change based on adjustments made through auditing.
Compared to July 2020, the state's reported tax revenues were also around $389 million less. In April, the General Assembly passed the 2021-2022 budget.
“Even as the state finishes the year with a sizable balance, future growth remains a concern," said Eley. "Thus, we will continue to monitor national and global economic indicators to manage our spending and revenue collections appropriately.”
