TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
JANUARY 2005 COLLECTIONS

NASHVILLE, Tenn. - January 2005 collections of the Tennessee Department of Revenue were $929,321,408, an increase of $73,504,381 or 8.6 percent over January 2004 collections.

Sales and use tax collections were $620,404,640, up $35,326,209 or 6 percent over January 2004 collections. The retail trade group was up 5.5 percent over last year's collections. All sectors in the retail group recorded increases over last year: general merchandise stores (up 4.4 percent), auto dealers and service stations (up 5.8 percent), eating and drinking places (up 7 percent), furniture stores (up 10.7 percent), building materials stores (up 11.3 percent), food stores (up 4.3 percent), miscellaneous retail stores (up 2.8 percent), and apparel and accessories stores (up 5.1 percent). Sales tax receipts from the services group were up 3.7 percent, with increased collections in business services (up 5.4 percent) providing most of the increase. Collections from the non-retail, non-services group were up 7 percent, with increases in wholesale trade (up 10.2 percent), manufacturing (up 9.7 percent), and communications (up 6.9 percent) providing most of the change. Agriculture, forestry and fishing concerns posted significantly lower collections (down 75 percent). Consumer use tax collections were up 21.2 percent from collections in the same period last year.

Franchise and excise tax collections were $149,516,444, up $28,547,367 or 23.6 percent when compared to January 2004 collections. Separately, franchise tax collections were $49,314,943, up $3,334,454 or 7.3 percent over last year. Excise tax collections were $100,201,501, an increase of $25,212,912 or 33.6 percent over January 2004 collections.

Motor vehicle registrations totaled $17,659,436, gaining $3,014,745 or 20.6 percent over last year's registrations.

TVA payments in-lieu-of gross receipts taxes were $18,038,751, an increase of $1,282,969 or 7.7 percent over January 2004 payments.

Collections from the privilege taxes were $21,753,294, an increase of $1,252,917 or 6.1 percent over collections in the same period one year ago.

Individual income tax collections were $2,864,931, a decline of $1,028,703 or 26.4 percent from last year's collections.

The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2003-2004 fiscal year, the department collected $9.1 billion in state taxes and fees. In addition to collecting state taxes, $1.6 billion of local sales tax was collected by the department for local governments during the 2003-2004 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.Tennessee.gov/revenue.

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