TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
FEBRUARY 2005 COLLECTIONS

NASHVILLE, Tenn. - February 2005 collections of the Tennessee Department of Revenue were $634,867,110, an increase of $43,266,244 or 7.3 percent over February 2004 collections.

Sales and use tax collections were $446,985,950, up $20,592,995 or 4.8 percent over February 2004 collections. The retail trade group was up 3.5 percent over last year's collections. Eating and drinking places (up 10 percent), general merchandise stores (up 6 percent), building materials stores (up 12.6 percent), and miscellaneous retail stores (up 5.4 percent) accounted for most of the increase. The auto dealers and service stations sector (down 2.1 percent) was the only retail sector posting significant declines. Sales tax receipts from the services group were up 4 percent, with increased collections in business services (up 11.7 percent) providing most of the increase. Collections from the non-retail, non-services group were up 5.7 percent, with increases in wholesale trade (up 13.2 percent) providing most of the change. The communications sector (down 4.8 percent) was the only sector in the non-retail, non-services group with significant declines in collections. Consumer use tax collections were up 45.9 percent from collections in the same period last year.

Franchise and excise tax collections were $34,577,378, up $11,112,388 or 47.4 percent when compared to February 2004 collections. Separately, franchise tax collections were $9,813,582, up $7,164,275 or 270.4 percent over last year. Excise tax collections were $24,763,796, an increase of $3,948,112 or 19 percent over February 2004 collections.

Gasoline tax collections were $51,140,572, an increase of $5,059,512 or 11 percent when compared to last year's collections.

Motor vehicle registrations totaled $22,456,309, gaining $3,284,755 or 17.1 percent over last year's registrations.

Motor vehicle fuel tax collections increased $2,967,824 or 25.8 percent over last year's collections to $14,467,692.

TVA payments in-lieu-of gross receipts taxes were $18,066,751, an increase of $1,310,969 or 7.8 percent over February 2004 payments.

Collections from the inheritance, gift and estate taxes were $7,854,620, a decrease of $1,317,328 or 14.4 percent compared to collections in the same period one year ago.

Tobacco tax collections were $7,771,162, a decline of $1,236,072 or 13.7 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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