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State-Shared Taxes and Appropriations for the Coming Fiscal Year

Reference Number: MTAS-545
Tennessee Code Annotated
Reviewed Date: June 17, 2021
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The Tennessee Department of Revenue makes payments of state-shared revenues to all Tennessee municipalities based on population. MTAS tracks the monthly revenues reported by the Department of Revenue and uses those along with estimates to forecast what cities may expect to receive in the coming fiscal year.

The estimates shown below include actual numbers through January 2021, as well as an initial estimate for the 2021-22 fiscal year. The effects of the COVID-19 virus on the economy are still a factor, so the reader should use sound judgement and caution when budgeting for 2021-22. State and federal grants will help offset the effect of COVID-19 but may be restricted in use. We will continue to monitor state collections and update this publication regularly.

The first column in the chart below shows an updated estimate for the 2019-20 fiscal year ($139.47). The second column takes what is known throuh part of 2020-21 and extrapolates a conservative estimate of state-shared revenues for the 2020-21 fiscal year ($153.00). This estimate is preliminary, especially since the economic impact of COVID-19 is still ongoing. State sales tax is up 11.5% through the first ten months of the current fiscal year compared to the same time last year. Gas and motor fuel taxes are down 3.9% as the IMPROVE Act increases ended with the 2020 fiscal year. This can to be used as a tool in estimating projected revenue for the 2020-21 and 2021-22 fiscal years. It is but one tool, and a multi-year trend analysis should also be prepared to assist in determining the appropriate estimate for the FY 2020-21 actual projections and the 2021-22 budget.  For the 2021-22 fiscal year, we anticipate modest economic growth as it appears at the present time that the economic impact of the COVID-19 pandemic appears to be easing based on known growth through January of 2021 compared to the prior year. The reader should periodically refer back to this publication as we will update it as more actual data is known.

  Estimate 2019-2020 Estimate 2020 - 2021 Initial Estimate 2021 - 2022
General Fund Per Capita Amount Per Capita Amount Per Capita Amount
State Sales Tax $90.00 $102.70 $103.00
State Beer Tax 0.48 0.48 0.48

Special Petroleum Products Tax
(City Streets and Transportation Revenue)

1.99 1.99 1.99
Gross Receipts Tax
(TVA in lieu of taxes)
12.00 11.43 11.60
Sports Betting (Gaming  -  1.00 1.00
Total General Fund Revenue $104.47 $117.60 $118.07
State Street Aid Funds      
Gasoline and Motor Fuel Taxes $35.00 $35.40 $35.70
Total Per Capita (General and State Street Aid Funds) $139.47 $153.00 $153.77