Tuesday, May 12, 2020

Tennessee tax receipts for April off 29% from last year.

As reported in the Tennessean today, State tax receipts for April 2020 were only $855 million.  That compares to April 2019 tax receipts of $1.2 billion. That is a reduction of $345 million. If we had not had the Corona virus of course, revenues would have increased from 2019.  Luckily, Tennessee is in much better financial shape than the city of Nashville and has reserves.  Still, if this level of revenue loses continued, it would be extremely difficult to develop a budget without massive cuts. The State has already imposed a hiring freeze and ordered a halt to all but essential spending.  April's collections reflect economic activity in March, so May's numbers which reflect April collections may even be worst. Hopefully, April and May were the worst month of revenue loses and we will start to see a recovery. For more on this read the story at this link.

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