x
Breaking News
More () »

Tax revenues for Tennessee plummet thanks to coronavirus

The Volunteer State is down $700 million from tax revenue, and that is only for the month of April

MEMPHIS, Tennessee —

In Wednesday's Ransom Note: we hear so much about millions, billions, and trillions of dollars these days, it's easy to lose perspective.

COVID-19 is costing Tennessee millions in lost tax revenue, and numbers for April are astounding. We're not shopping as much, so sales tax revenue is down $61 million from budget. We're not driving as much, and gas tax receipts are down $5.6 million. Car registrations are down, costing $10.8 million. We're apparently not smoking as much, which is not such a bad thing, except it cost the state $3.2 million in tobacco tax revenues. Tennessee charges a 15% tax on 'liquor by the drink,' so revenues are down $7.4 million.

All the business taxes, franchise and excise, the so-called Hall Tax, are way down as well. It all adds up to a hit of $693.8 million, remember, that's just for April.

Luckily, our economy was humming along nicely before COVID-19, so the surplus  will ease the pain a little, but the hit is huge and shows all states are going to have their hands out even more in the weeks ahead.

Join the conversation by email (rransom@localmemphis.com), Facebook, or Twitter.

RELATED: COVID-19 hits the state coffers: Tax revenues plunge for April

RELATED: State lawmakers could consider cuts to TennCare to make up budget shortfalls

RELATED: Your car insurance company could give you credit, refunds due to COVID-19

Before You Leave, Check This Out