TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
FEBRUARY 2006 COLLECTIONS

NASHVILLE, Tenn. - February 2006 collections of the Tennessee Department of Revenue were $656,997,816, an increase of $22,130,706 or 3.5 percent over February 2005 collections.

Sales and use tax collections were $483,846,493, up $36,860,543 or 8.2 percent over February 2005 collections. The retail trade group was up 7.3 percent over last year's collections. Building materials stores (up 23.7 percent), miscellaneous retail stores (up 12.7 percent), eating and drinking places (up 8.6 percent), general merchandise stores (up 4.5 percent), furniture stores (up 12.5 percent), and food stores (up 3.2 percent) accounted for most of the increase. Sales tax receipts from the services group were up 7.4 percent, with increased collections in business services (up 6.2 percent) leading the group. Collections from the non-retail, non-services group were up 15.6 percent, with increases in the communications (up 18.4 percent), wholesale trade (up 21.1 percent), manufacturing (up 11.9 percent), and electricity, gas and sanitary services (up 14.1 percent) sectors accounting for most of the increase. Consumer use tax collections were up 33.5 percent over February 2005 collections.

Franchise and excise tax collections were $16,328,344, down $18,249,034 or 52.8 percent when compared to February 2005 collections. Separately, franchise tax collections were $12,537,398, up $2,723,816 or 27.8 percent over last year. Excise tax collections were $3,790,946, down $20,972,850 or 84.7 percent from February 2005 collections.

Collections from the privilege taxes were $19,866,526, a 24.6 percent or $3,919,240 increase over total privilege taxes collected in the same period last year.

Tobacco tax collections were $10,979,710, an increase of $3,208,548 or 41.3 percent over collections in the same period last year.

Gasoline tax collections were $46,911,319, a decrease of $4,229,253 or 8.3 percent from February 2005 collections.

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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