TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
JANUARY 2007 COLLECTIONS

NASHVILLE, Tenn. - January 2007 collections of the Tennessee Department of Revenue were $1,010,674,054, an increase of $56,342,403 or 5.9 percent over January 2006 collections.

Sales and use tax collections were $702,671,100, up $29,865,004 or 4.4 percent over January 2006 collections. The retail trade group was up 4.7 percent over collections from last year. Contributing to the rise were general merchandise stores (up 6.5 percent), eating and drinking places (up 9.2 percent), auto dealers and service stations (up 6.1 percent), food stores (up 3.5 percent), miscellaneous retail stores (up 2.2 percent), and building materials stores (up 5.1 percent). Sales tax receipts from the services group were up 8.7 percent with increases by business services (up 5.7 percent), amusement and recreation services (up 27.5 percent), and other services (up 51.1 percent) leading the group. Collections from the non-retail, non-services group were up 4.5 percent where increases in communications (up 14.9 percent), transportation (up 41.6 percent), and wholesale trade (up 4 percent) were partially offset by decreased collections in the manufacturing sector (down 10.8 percent). Consumer use tax collections were down 58.9 percent from collections in January 2006.

Franchise and excise tax collections were $131,419,148, up $12,419,384 or 10.4 percent when compared to January 2006 collections. Separately, franchise tax collections were $45,092,677, up $7,709,126 or 20.6 percent over last year. Excise tax collections were $86,326,471, up $4,710,258 or 5.8 percent over January 2006 collections.

Gasoline tax collections were $56,418,070, an 8.1 percent or $4,229,947 gain over collections in the same period last year.

Motor vehicle fuel collections increased $3,725,976 or 27.1 percent over last January's collections to $17,469,985.

Individual income tax collections were $6,670,435, an increase of $2,822,004 or 73.3 percent.

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

Motor vehicle registrations were $18,388,526, an increase of $1,986,990 or 12.1 percent.

Tobacco tax collections were $8,151,896, a decline of $1,652,836 or 16.9 percent from January 2006 collections.

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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