TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
OCTOBER 2007 COLLECTIONS

NASHVILLE, Tenn – October 2007 collections of the Tennessee Department of Revenue were $703,475,236, a decrease of $48,249,729 or 6.4 percent over October 2006 collections.

Sales and use tax collections totaled $574,524,171, an increase of $10,392,936 or 1.8 percent over the October 2006 collections.

Collections from the retail trade group increased 1.3 percent.  Items with significant changes include:

• Eating and drinking places: up 6.2 percent
• General merchandise: up 2.2 percent
• Food stores: up 3.2 percent
• Motor vehicle dealers and service stations: up 1.1 percent (overcoming a 2.4 percent decline in the new, used motor vehicle sub-category item)
  
• Building materials: down 6.2 percent

Collections from the service group increased 2.9 percent led by gains in business services (up 6.1 percent).

Collections from the non-retail, non-services group increased 1.2 percent led by gains in communications (up 2.7 percent).

Consumer use collections were $358,708, a decline of $34,535 (8.8 percent) from October 2006.

Franchise and excise tax collections were a negative $58,674,774, a decrease of $66,232,493 or a negative 876.4 percent when compared to October 2006.  Separately, franchise tax collections were a negative $4,747,659, a decrease of $39,305,468 or 113.7 percent from last October.  The excise tax collection was a negative $53,927,115, a decline of $26,927,025 or 99.7 percent from October 2006.

Tobacco tax collections were $23,135,838, an increase of $12,770,451 or 123.2 percent over the collection of October 2006.

Gasoline tax collections were $53,514,462, an increase of $2,760,241 or 5.4 percent over October last year.

Income tax collections amounted to $4,710,346, an increase of $1,063,166 or 29.2 percent over last October.

Inheritance and estate tax collections were $7,022,957, a decrease of $7,722,129 or 52.4 percent from October last year.

Privilege tax collections were $24,217,563, a decrease of $1,470,857 or 5.7 percent compared to October of last year.

Motor vehicle fuel tax collections were $17,098,310, a decrease of $1,130,809 or 6.2 percent from October 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 2006-2007 fiscal year, the department collected $11.0 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2006-2007 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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