TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
OCTOBER 2005 COLLECTIONS

NASHVILLE, Tenn. - October 2005 collections of the Tennessee Department of Revenue were $714,280,252, an increase of $36,763,972 or 5.4 percent over October 2004 collections.

Sales and use tax collections were $532,454,116, up $31,251,828 or 6.2 percent over October 2004 collections. T he retail trade group was up 3.8 percent over last year's collections. Building materials stores (up 14.7 percent), miscellaneous retail stores (up 8 percent), general merchandise stores (up 5.2 percent), furniture stores (up 15.9 percent), food stores (up 5 percent), and eating and drinking places (up 4.2 percent) accounted for most of the increase. The auto dealers and service stations (down 8.3 percent) sector was the only retail sector posting a decline in sales and use tax collections. Sales tax receipts from the services group were up 4.8 percent, with increased collections in hotels and lodging places (up 6.4 percent) leading the group. Collections from the non-retail, non-services group were up 13.9 percent, with increases in the communications (up 16.1 percent), wholesale trade (up 13.3 percent), manufacturing (up 10.6 percent), and electricity, gas and sanitary services (up 13.1 percent) sectors accounting for most of the increase. Consumer use tax collections were down 36.7 percent from October 2004 collections.

Franchise and excise tax collections were $15,405,903, down $6,615,988 or 30 percent when compared to October 2004 collections. Separately, franchise tax collections were $29,437,814, up $5,901,385 or 25.1 percent over last year. Because refunds exceeded payments, excise tax collections were negative at -$14,031,912, a decline of $12,517,372 or 826.5 percent from (the also negative) October 2004 collections.

Collections from the privilege taxes were $26,318,042, a 20 percent or $4,390,383 increase over total privilege taxes collected in the same period last year.

Motor vehicle fuel tax collections were $16,402,774, an increase of $2,675,071 or 19.5 percent over collections in the same period last year.

Motor vehicle registrations were $19,339,105, increasing $1,918,601 or 11 percent over October 2004.

Individual income tax collections were $2,296,991, an increase of $1,252,494 or 119.9 percent over collections in October 2004.

Collections from the inheritance, gift and estate taxes were $7,398,752, an increase of $1,082,512 or 17.1 percent compared to collections in the same period one year ago.

Gasoline tax collections increased $1,011,042 or 2 percent over last year's collections to $51,150,571.

Tobacco tax collections declined by $1,311,303 or 12.7 percent from last year's collections to $8,976,330.

The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2004-2005 fiscal year, the department collected $9.6 billion in state taxes and fees. In addition to collecting state taxes, $1.7 billion of local sales tax was collected by the department for local governments during the 2004-2005 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.

###