Tennessee revenue drops by almost 40% in April; tax deadlines extended

The Tennessee Department of Finance and Administration announced the drop of revenue for the state government by 39.75% for the month of April as compared to last year. (Courtesy Fotolia)
The Tennessee Department of Finance and Administration announced the drop of revenue for the state government by 39.75% for the month of April as compared to last year. (Courtesy Fotolia)

The Tennessee Department of Finance and Administration announced the drop of revenue for the state government by 39.75% for the month of April as compared to last year. (Courtesy Fotolia)

The Tennessee Department of Finance and Administration announced the drop of revenue for the state government by 39.75% for the month of April as compared to last year, according to a release.


State revenue for April 2020 was about $1.3 billion, which is $693.8 million less than the state budgeted for.

“The signs of economic downturn due to the COVID-19 pandemic have begun to appear in Tennessee’s April tax receipts,” Department Commissioner Butch Eley said in a release. “It has been 10 years since an economic downturn has impacted state revenues. The state’s large monthly revenue surpluses built up throughout the beginning of the year will now be tested as the pandemic’s impact begins to erase those gains. Yet we remain committed to keeping the state's budget in balance despite the current challenges.”

The drop of revenue for the state can be attributed to a number of different revenue sources, as the general fund revenue was less than budgeted estimates by over $650 million. Within that, the sales tax revenue was $61.2 million less than estimated, and franchise and excise tax revenue was $486 million lower than estimated.

Other tax revenue, such as tobacco, mixed drink, privilege, business and motor vehicle registration taxes, were also millions of dollars less than the state estimated.

“April sales tax revenues, reflecting March taxable sales activity, were weakened as the state began to withdraw from its usual patterns of consumer spending by mid-month,” Eley said in a release. “Franchise and excise tax receipts, along with Hall income and business taxes are also notably reduced due to filing extensions that will allow individuals and businesses to report their taxable activity later in the year.”


The Tennessee Department of Revenue extended the due date for some taxes April 6. Franchise, excise and Hall income taxes originally due April 15 have been pushed back to July 15, while business taxes originally due April 15 have been pushed back to June 15. According to the department, interest and late filing penalties will not be applied to tax returns filed before the extended due date.

“We are committed to helping taxpayers,” Revenue Commissioner David Gerregano said in a release. “We know that taxpayers are doing all they can to meet the current challenges while continuing to comply with state tax requirements. We hope to offer some relief through the extension of these deadlines.”


MOST RECENT

Penn Station East Coast Subs opened in early June. (Wendy Sturges/Community Impact Newspaper)
Penn Station East Coast Subs now open in Franklin

This is the first Franklin location for the company.

Developers have announced the next phase of mixed-use center McEwen Northside. (Courtesy McEwen Northside, Northwood Ravin)
Developers announce next phase of McEwen Northside in Cool Springs

The next phase of McEwen Northside is expected to be complete in late 2022.

Onyx & Alabaster opened a coffee lounge in downtown Franklin in late May. (Wendy Sturges/Community Impact Newspaper)
Onyx & Alabaster relocates shop, opens coffee lounge in Franklin

The design studio and home market also operates a coffee lounge in Franklin's Public Square.

The Heritage Foundation of Williamson County has announced multiple historic sites in need of preservation. (Courtesy The Heritage Foundation of Williamson County)
Heritage Foundation of Williamson County announces list of 6 historic sites at risk

The foundation has identified several sites in danger of development or deterioration.

Tours will take place throughout downtown Franklin. (Wendy Sturges/Community Impact Newspaper)
Franklin Walking Tours launches; deadline nears for Brentwood's best ash tree contest and more top area news

Read the top business and community news from the Franklin and Brentwood areas.

The city of Brentwood will rename a portion of Franklin Road in honor of officer Destin Legieza. (Wendy Sturges/Community Impact Newspaper)
Portion of Franklin Road to be renamed in honor of Brentwood officer Destin Legieza

Leigieza was killed in a head-on collision with an impaired driver in June 2020.

Some trees in downtown Franklin have outgrown their basins. (Wendy Sturges/Community Impact Newspaper)
Franklin BOMA discusses renovating sidewalks in downtown

The project would improve existing sidewalks from 1st Avenue to 5th Avenue to remove faded and uneven pavers while providing a wider area of walking space in front of downtown shops.

North Italia offers Italian fare and pizza. (Courtesy North Italia)
North Italia announces opening date for Franklin location

The eatery is expected to open in McEwen Northside in July.

Here are the latest coronavirus updates from Williamson County. (Community Impact Newspaper staff)
Active COVID-19 cases in Williamson County drop to 100; 50% of residents have at least 1 vaccine dose

Half of all residents in Williamson County are now partially vaccinated.

Tours will take place throughout downtown Franklin. (Wendy Sturges/Community Impact Newspaper)
Franklin Walking Tours launches with ghost, psychic tours

Tour themes include Downtown Charm, Grim and Ghostly, and Picture Perfect.

The city of Brentwood will accept entries for its ash tree contest through June 15. (Courtesy city of Brentwood)
Deadline approaching for Brentwood's best ash tree contest

The contest is intended to help the city track the destruction made by emerald ash borers.