The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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State-Shared Taxes and Appropriations for the Coming Fiscal Year

Reference Number: MTAS-545
Tennessee Code Annotated
Reviewed Date: May 02, 2017
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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 first column in the chart below shows what was estimated for the 2016-17 fiscal year ($123.30). The second column takes what is estimated through June, and using available market data including the state’s estimated growth for 2017-18, then makes a conservative estimate of state-shared revenues for the 2017-18 fiscal year. This estimate is preliminary, especially since only eight months of actual data are available at this time.

NOTE** New legislation was recently passed that increased gas and motor fuel taxes and decreased state sales tax on food products. The effect of this legislation is reflected in the 2017-18 estimates below. Through February 2017 state sales tax shows a state-wide increase of 4 percent over the prior year. State beer tax and the special petroleum tax remain unchanged. The TVA in-lieu-of tax is lower than our estimate for 2016-17. Gasoline and motor fuel taxes have increased about 2 percent over the prior year. MTAS will review monthly actual revenue and will update the estimate if it changes significantly.

  Estimate 2016-2017 Estimate 2017-2018
General Fund Per Capita Amount Per Capita Amount
State Sales Tax $81.00 $80.40
State Beer Tax .50 .50

Special Petroleum Products Tax
(City Streets and Transportation Revenue)

2.05 2.05
Gross Receipts Tax
(TVA in lieu of taxes)
11.75 11.30
Total General Fund Revenue $95.30 $94.25
State Street Aid Funds    
Gasoline and Motor Fuel Taxes $28.00 $33.20
Total Per Capita (General and State Street Aid Funds) $123.30 $127.45