(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.
Recommended Stories
- Adams calls for tougher New York masking restrictions
- Big reveal: Republican lawmakers more liberal than constituents
- States finalize $7.4 billion in opioid settlement with Purdue Pharma
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.
MARSHA BLACKBURN SLAMS NASHVILLE MAYOR FOR BEING ON WRONG SIDE OF IMMIGRATION DEBATE
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.”