www.thecentersquare.com – By Kim Jarrett | The Center Square – (The Center Square – ) 2025-05-23 09:20:00
Tennessee’s general fund revenue is \$114 million below estimates, with total tax collections down \$117.6 million compared to projections and \$316.9 million less than April last year. The largest decline is in corporate franchise and excise taxes, falling \$153.2 million (13.2%) due to 2024 tax cuts and use of prior year tax credits. Fuel taxes dropped 4% in April but rose 5% in March, with year-to-date fuel tax revenue slightly exceeding estimates by 1%. Sales tax receipts were near targets, and business taxes showed gains. Finance leaders remain optimistic and committed to a balanced budget.
(The Center Square) — Tennessee’s general fund revenue is $114 million less than estimated and the state’s other tax collections are down by $3.6 million but Finance and Administration Commissioner Jim Bryson said he is optimistic the next three months will be better.
Revenue for all sources is off by $117.6 million when compared to estimates and is $316.9 million less than in April of last year, according to Bryson.
The most significant reduction is in corporate franchise and excise collections, which are $153.2 million below estimate, a 13.2% drop.
“Corporate tax payments were notably lower this year due to tax policy changes that reduced taxpayers’ franchise tax liabilities,” said Gina L. Long, director of communications. “Additionally, many corporate taxpayers are utilizing carryforward tax credits from prior years, and several large, non-recurring payments were included in last year’s collections.”
The General Assembly passed a corporate franchise tax cut in 2024 that was estimated to cost the state $1.6 billion. Corporations started applying for the tax break in May 2024.
Fuel taxes were down 4% in April but were up 5% in March.
“Year-to-date, we’re up nearly 1% and exceeding our estimates by $3 million,” Long said of the fuel taxes.
April is the ninth month of the 2024-2025 fiscal year.
“We are encouraged that sales tax receipts were close to targeted figures and that the state’s business and privilege taxes continue to show promising gains,” Bryson said. “As we continue to closely monitor state finances, we remain committed to maintaining a balanced budget that serves Tennesseans well.”
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Centrist
The content primarily reports on Tennessee’s state revenue figures and the impacts of recent tax policy changes without using charged language or evident editorializing. It provides factual information about reduced revenues in corporate taxes due to legislation passed by the General Assembly, including quotes from government officials that explain the situation. The article does not argue for or against the tax cuts or other policies; instead, it conveys the data and official statements in a straightforward manner. This approach indicates neutral, factual reporting that focuses on presenting the circumstances and responses without advocating a particular ideological perspective.
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