TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
AUGUST 2006 COLLECTIONS

NASHVILLE, Tenn. - August 2006 collections of the Tennessee Department of Revenue were $768,564,948, an increase of $30,597,075 or 4.1 percent over August 2005 collections.

Sales and use tax collections were $558,419,208, up $25,864,140 or 4.9 percent over August 2005 collections.

Franchise and excise tax collections were $28,123,101, down $5,552,742 or 16.5 percent when compared to August 2005 collections. Separately, franchise tax collections were $9,139,229, down $4,059,539 or 30.8 percent from last year. Excise tax collections were $18,983,872, down $1,493,202 or 7.3 percent from August 2005 collections.

Collections from the privilege taxes were $24,414,653, an increase of $2,968,548 or 13.8 percent over collections in August of 2005.

Business tax collections were $3,080,813, an increase of $2,002,037 or 185.6 percent over August 2005 collections.

Motor vehicle registrations were $20,777,873, surpassing last year's collections by $1,604,200 or 8.4 percent.

Motor vehicle fuel tax collections were $16,210,235, a 10.9 percent or $1,588,581 increase over collections in the same period one year ago.

Income tax collections increased $1,261,945 or 80.2 percent over last year's collections to $2,836,427.

Gross receipts taxes were $13,698,911, an increase of $1,024,488 or 8.1 percent over August 2005 collections.

Tobacco tax collections decreased $1,140,658 or 9.5 percent from collections in the same period last year to $10,922,878.

The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2005-2006 fiscal year, the department collected $10.3 billion in state taxes and fees. In addition to collecting state taxes, $1.8 billion of local sales tax was collected by the department for local governments during the 2005-2006 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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