Published: February 21, 2021


THE TENNESSEE DEPARTMENT OF FINANCE AND ADMINISTRATION RECENTLY ANNOUNCED THAT OVERALL, JANUARY STATE TAX REVENUES EXCEEDED BUDGETED ESTIMATES. ACCORDING TO A PRESS RELEASE, REVENUES FOR JANUARY TOTALED 1.67 BILLION DOLLARS, WHICH IS 380.1 MILLION DOLLARS MORE THAN BUDGETED AND 7.66 PERCENT GREATER THAN REVENUES RECEIVED IN JANUARY 2020. JANUARY SALES TAX REVENUES, REFLECTING CONSUMER SPENDING DURING THE DECEMBER 2020 CHRISTMAS SHOPPING SEASON, WERE INCREDIBLY STRONG AND TAXABLE SALES IN THE SECOND QUARTER OF THE CURRENT FISCAL YEAR INCREASED 7.85 PERCENT COMPARED TO THE SAME QUARTER LAST YEAR. CONSUMERS CONTINUE TO FOCUS SPENDING GROWTH ON ITEMS SUCH AS BUILDING MATERIALS, AUTO SALES AND GROCERIES, BUT A LARGE PART OF THE STATE’S SALES TAX GROWTH CAN BE CREDITED TO THE IMPACT OF THE STATE’S MARKETPLACE FACILITATOR LAW. AS MUCH AS 3.4 PERCENT OF JANUARY’S SALES TAX GROWTH CAN BE ATTRIBUTED TO THIS NEWLY EXPANDED TAX BASE, WHICH IS A REFLECTION OF INTERNET SALES, AND NEARLY 2.4 PERCENT OF ALL SALES TAX GROWTH FOR THE YEAR IS DUE TO THE LAW CHANGE. CORPORATE TAX REVENUES ALSO HAD SOLID GROWTH COMPARED TO LAST JANUARY, WHILE ALL OTHER TAXES, TAKEN AS A WHOLE, WERE NEAR EVEN.