November Revenue Numbers Show Growth But Also Caution

November revenue numbers are out for the state and while Tennessee continues to experience growth, the month showed some downward trends. Overall November state revenues were $1.5 billion, which was 6% more than November of 2021 and nearly $157 million more than the budgeted estimate. Department of Finance and Administration Commissioner Jim Bryson says that total revenues continued to outpace budgeted estimates, total overall growth was mixed. He says while growth from sales and use taxes, reflecting October consumer spending, remains strong, weakness in privilege taxes and motor vehicle registrations restrained November’s growth. Bryson says privilege tax collections have slowed due to high interest rates and motor vehicle registration payments are lower compared to this time last year due to the one-year registration waiver granted to Tennessee motorists.

Bryson says sales tax revenues had 10% growth and franchise and excise taxes had a growth rate of over 15%. However, gasoline and motor fuel revenues are down over $5 million from last year and privilege tax revenues are down 9% from 2021.