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December 2008 Collections

For Immediate Release: January 9, 2009

TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS
OF DECEMBER 2008 COLLECTIONS

NASHVILLE - December 2008 collections of the Tennessee Department of Revenue were $811,036,577, a decrease of $74,677,704 or 8.4 percent from December 2007 collections.

Sales and use tax collections totaled $504,646,163, a decrease of $57,793,988 or 10.3 percent from December 2007 collections.

Collections from the retail trade group decreased 10.6 percent. Items with significant changes include:

  • Motor vehicle dealers and service stations: down 26.8 percent (with a 32.6 percent decline in the new, used motor vehicle sub-category item)
  • Building materials: down 22.8 percent
  • General merchandise stores: down 4.5 percent
  • Food stores: down 5.1 percent
  • Miscellaneous stores: down 5.6 percent
  • Furniture & home furnishings stores: down 9.9 percent
  • Apparel & accessory stores: down 10.7 percent
  • Eating & drinking places: down 2.9 percent

Collections from the service group decreased 7.5 percent from December 2007. The biggest contributor to the decline was automotive repair, services and parking, down by 15.1 percent.

Collections from the non-retail, non-services group decreased 10.7 percent led by a loss in wholesale trade (-25.9 percent) and manufacturing (-17.6 percent), and partially offset by an increase in electric, gas and sanitary services (16.2 percent).

Consumer use collections were $318,107, an increase of $83,153 (35.4 percent) from December 2007.

Franchise and excise tax collections were $142,476,218, a decrease of $8,270,974 or 5.5 percent when compared to December 2007. Separately, franchise tax collections were $48,473,901, a drop of $2,928,075 or 5.7 percent from last December. Excise tax collections were $94,002,317, a decrease of $5,342,899 or 5.4 percent from December 2007.

Tobacco tax collections were $26,962,339, an increase of $4,516,560 or 20.1 percent over the collection of December 2007.

TVA in-lieu of tax collections were $24,014,435, an increase of $2,002,816 or 9.1 percent compared to December 2007 collections.

Motor vehicle fuel tax collections were $10,227,154, a decrease of $5,325,049 or 34.2 percent compared to December 2007.

Privilege tax collections were $13,069,822, a decrease of $5,221,039 or 28.5 percent compared to December 2007 collections.

Inheritance and estate tax collections were $7,144,189, a decrease of $3,292,189 or 31.6 percent from December 2007.

Income tax collections were $2,595,487, a decrease of $1,144,068 or 30.6 percent compared to December 2007.

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 2007-2008 fiscal year, the department collected $11.2 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 2007-2008 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.TN.gov/revenue.

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