TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
DECEMBER 2005 COLLECTIONS

NASHVILLE, Tenn. - December 2005 collections of the Tennessee Department of Revenue were $810,754,263, an increase of $38,388,010 or 5 percent over December 2004 collections.

Sales and use tax collections were $523,271,451, up $45,820,706 or 9.6 percent over December 2004 collections. The retail trade group was up 6.8 percent over last year's collections. Miscellaneous retail stores (up 12.4 percent), building materials stores (up 16.9 percent), food stores (up 10.2 percent), general merchandise stores (up 5 percent), eating and drinking places (up 6.3 percent), furniture stores (up 12.4 percent), and apparel and accessory stores (up 7.1 percent) accounted for most of the increase. Auto dealers and service stations (down 3.1 percent) was the only retail sector posting a decline in sales and use tax collections for the month. Sales tax receipts from the services group were up 8.8 percent, with increased collections in business services (up 12.2 percent) and hotels and lodging places (up 9.9 percent) leading the group. Collections from the non-retail, non-services group were up 19.3 percent, with increases in the transportation (up 153 percent), wholesale trade (up 24.9 percent), communications (up 9.7 percent), manufacturing (up 8.2 percent), and electricity, gas and sanitary services (up 9.2 percent) sectors accounting for most of the increase. Consumer use tax collections were down 16.2 percent from December 2004 collections.

Franchise and excise tax collections were $136,000,932, down $6,099,297 or 4.3 percent when compared to December 2004 collections. Separately, franchise tax collections were $53,174,999, up $438,749 or 0.8 percent over last year. Excise tax collections were $82,825,933, down $6,538,046 or 7.3 percent from December 2004 collections.

Collections from the privilege taxes were $21,108,771, a 14.2 percent or $2,631,017 increase over total privilege taxes collected in the same period last year.

Motor vehicle fuel tax collections were $15,561,155, an increase of $1,292,330 or 9.1 percent over collections in the same period last year.

Collections from the inheritance, gift and estate taxes were $3,342,621, a decrease of $6,171,794 or 64.9 percent compared to collections in the same period one year ago.

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.

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