TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
NOVEMBER 2006 COLLECTIONS

NASHVILLE, Tenn. - November 2006 collections of the Tennessee Department of Revenue were $753,346,205, an increase of $17,939,016 or 2.4 percent over November 2005 collections.

Sales and use tax collections were $535,751,907, up $20,509,616 or 4 percent over November 2005 collections. The retail trade group was up 4.9 percent over collections from last year. Contributing to the rise were auto dealers and service stations (up 10.8 percent), eating and drinking places (up 7 percent), miscellaneous retail stores (up 6.9 percent), and general merchandise stores (up 3.5 percent). Sales tax receipts from the services group were up 4.4 percent with increases by automotive repair, service and parking establishments (up 9.2 percent) and hotels and lodging places (up 7.9 percent) leading the group. Collections from the non-retail, non-services group were down 0.2 percent where decreases in manufacturing (down 12.4 percent), and communications (down 5.2 percent) were partially offset by increased collections in the wholesale trade sector (up 13 percent). Consumer use tax collections were up 3.1 percent over collections in November 2005.

Franchise and excise tax collections were $48,641,574, down $2,728,125 or 5.3 percent when compared to November 2005 collections. Separately, franchise tax collections were $25,645,029, up $7,415,477 or 40.7 percent over last year. Excise tax collections were $22,996,545, down $10,143,603 or 30.6 percent from November 2005 collections.

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

Privilege tax collections increased $2,633,710 or 11.8 percent over last November's collections to $24,967,667.

Inheritance, estate and gift tax collections were $14,119,001, an increase of $1,983,470 or 16.3 percent over collections in November 2005.

Gasoline tax collections were $47,644,308, an 11.7 percent or $6,335,699 decline from collections in the same period last year.

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.

###