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Post-COVID Tennessee budget sees impacts from tax cuts

As Tennessee’s franchise and excise tax cuts go into effect, tax revenue growth will likely slow down.

According to the Tennessee Lookout, the slump comes after state revenues from internet sales tax, franchise and excise tax collections steadily increased over the past five years.

The increased revenue from online sales tax drove Tennessee lawmakers to implement tax cuts and amend the state’s franchise and excise tax law earlier this year.

By the end of the last fiscal quarter, excise and franchise taxes missed projections by more than $61 million, but sales tax exceeded projections by $74 million.

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