TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
OCTOBER 2006 COLLECTIONS

NASHVILLE, Tenn. - October 2006 collections of the Tennessee Department of Revenue were $751,724,965, an increase of $37,444,713 or 5.2 percent over October 2005 collections.

Sales and use tax collections were $564,131,236, up $31,677,120 or 5.9 percent over October 2005 collections. The retail trade group was up 6.1 percent over collections from last year. Contributing to the rise were general merchandise stores (up 7.6 percent), auto dealers and service stations (up 6.9 percent), eating and drinking places (up 9.1 percent), miscellaneous retail stores (up 6.2 percent), apparel and accessories stores (up 10.6 percent), and food stores (up 3.4 percent). Sales tax receipts from the services group were up 5.4 percent with increases by hotels and lodging places (up 10 percent) leading the group. Collections from the non-retail, non-services group were up 5.5 percent with increases in wholesale trade (up 11.7 percent), and electric, gas and sanitary services (up 14 percent) accounting for most of the increase. Consumer use tax collections were down 5.9 percent from collections in October 2005.

Franchise and excise tax collections were $7,557,719, down $7,848,184 or 50.9 percent when compared to October 2005 collections. Separately, franchise tax collections were $34,557,809, up $5,119,995 or 17.4 percent over last year. Because refunds exceeded payments, the excise tax posted negative collections of -$27,000,090, down $12,968,179 or 92.4 percent from the also negative October 2005 period collections.

Inheritance, estate and gift tax collections were $14,745,087, an increase of $7,346,334 or 99.3 percent over collections in October 2005.

TVA in-lieu-of tax payments were $21,114,561, surpassing last year's collections by $2,770,308 or 15.1 percent.

Tobacco tax collections were $10,365,388, a 15.5 percent or $1,389,058 increase over collections in the same period one year ago.

Individual income tax collections increased $1,350,189 or 58.8 percent over last year's collections to $3,647,180.

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.

###