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Municipal Technical Advisory Service (MTAS)

State-Shared Taxes and Appropriations for the Coming Fiscal Year

Reference Number: MTAS-545
Reviewed Date: 10/25/2022

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 for FY 2021, as well as an estimate for the 2021-22 fiscal year using state provided numbers through June (12 months). The reader should be aware that the old population numbers were used for distribution for the first 3 months of FY 2021-22, and the new numbers will be used for the remainder of the fiscal year. This year poses several challenges in forecasting state shared revenues for 2022-23, including the effects of the COVID-19 virus, inflation at +/- 8% and very high fuel prices that affect almost every facet of our economy and budgets. The reader should use sound judgement and caution when budgeting for 2022-23. 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 2020-21 fiscal year ($152.97). The second column estimates 2021-22 ($164.70). For the 2022-23 fiscal year we currently estimate $166.82 but the reader should periodically refer back to this publication as we will update it as more actual data is known. This estimate is preliminary, especially due to several economic factors noted above. State sales tax increased 16.5% and gas and motor fuel taxes increased 5.2% through twelve months of the current fiscal year compared to the same time last year (although increases were very small in the last 3-4 months). This can to be used as a tool in estimating projected revenue for the 2022-23 fiscal year. It is but one tool, and a multi-year trend analysis should also be prepared to assist in determining the appropriate estimates going forward.

  Estimate 2020-2021 Estimate 2021 - 2022     Estimate     2022 - 2023
General Fund Per Capita Amount Per Capita Amount Per Capita Amount
State Sales Tax $102.70 $115.00 $117.00
State Beer Tax 0.48 0.46 0.46

Special Petroleum Products Tax
(City Streets and Transportation Revenue)

1.99 1.86 1.86
Gross Receipts Tax
(TVA in lieu of taxes)
11.43 10.38 10.50
Sports Betting (Gaming) .37 1.50 1.50
Total General Fund Revenue $116.97 $129.20 $131.32
State Street Aid Funds      
Gasoline and Motor Fuel Taxes $36.00 $35.50 $35.50
Total Per Capita (General and State Street Aid Funds) $152.97 $164.70