TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
JANUARY 2006 COLLECTIONS

NASHVILLE, Tenn. - January 2006 collections of the Tennessee Department of Revenue were $954,331,652, an increase of $25,010,243 or 2.7 percent over January 2005 collections.

Sales and use tax collections were $672,806,096, up $52,401,457 or 8.4 percent over January 2005 collections. The retail trade group was up 5.5 percent over last year's collections. Miscellaneous retail stores (up 12.1 percent), general merchandise stores (up 4.5 percent), building materials stores (up 13.4 percent), eating and drinking places (up 7.1 percent), furniture stores (up 8.8 percent), apparel and accessory stores (up 8.9 percent), and food stores (up 3.9 percent) accounted for most of the increase. Auto dealers and service stations (down 5.2 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 6 percent, with increased collections in business services (up 7.2 percent) and hotels and lodging places (up 11.8 percent) leading the group. Collections from the non-retail, non-services group were up 15.4 percent, with increases in the wholesale trade (up 21.5 percent), manufacturing (up 19.3 percent), electricity, gas and sanitary services (up 24.7 percent), and communications (up 3.8 percent) sectors accounting for most of the increase. Consumer use tax collections were up 128.9 percent over January 2005 collections.

Franchise and excise tax collections were $118,999,764, down $30,516,680 or 20.4 percent when compared to January 2005 collections. Separately, franchise tax collections were $37,383,551, down $11,931,392 or 24.2 percent from last year. Excise tax collections were $81,616,213, down $18,585,288 or 18.5 percent from January 2005 collections.

Collections from the privilege taxes were $25,689,445, an 18.1 percent or $3,936,151 increase over total privilege taxes collected in the same period last year.

Gasoline tax collections were $52,188,123, exceeding last year's January collections by $1,293,205 or 2.5 percent.

Collections from the inheritance, gift and estate taxes were $3,854,301, a decrease of $4,431,214 or 53.5 percent compared to collections in the same period one year ago.

Motor vehicle registrations were down $1,257,900 or 7.1 percent from last year's figure for a monthly total of $16,401,536.

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.

###