TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
MARCH 2005 COLLECTIONS

NASHVILLE, Tenn. - March 2005 collections of the Tennessee Department of Revenue were $720,538,500, an increase of $29,823,463 or 4.3 percent over March 2004 collections.

Sales and use tax collections were $465,516,614, up $30,216,661 or 6.9 percent over March 2004 collections. The retail trade group was up 5.8 percent over last year's collections. Furniture stores (up 35.9 percent), building materials stores (up 14.5 percent), food stores (up 6.4 percent), miscellaneous retail stores (up 4.4 percent), auto dealers and service stations (up 2.5 percent), and eating and drinking places (up 3.6 percent) accounted for most of the increase. Sales tax receipts from the services group were up 5.6 percent, with increased collections in business services (up 16.7 percent) providing most of the increase. Collections from the non-retail, non-services group were up 5.4 percent, with increases in manufacturing (up 17.3 percent), wholesale trade (up 8.8 percent) and transportation (up 60.2 percent) providing most of the change. The communications sector (down 7.7 percent) was the only sector in the non-retail, non-services group with significant declines in collections. Consumer use tax collections were up 276.3 percent from collections in the same period last year.

Franchise and excise tax collections were $104,182,446, up $1,976,233 or 1.9 percent when compared to March 2004 collections. Separately, franchise tax collections were $37,911,382, down $904,186 or 2.3 percent from last year. Excise tax collections were $66,271,064, an increase of $2,880,419 or 4.5 percent over March 2004 collections.

Collections from the inheritance, gift and estate taxes were $7,562,703, an increase of $3,468,414 or 84.7 percent compared to collections in the same period one year ago.

Individual income tax collections increased $1,305,466 or 12.5 percent over last year's collections to $11,747,301.

TVA payments in-lieu-of gross receipts taxes were $18,010,751, an increase of $1,254,969 or 7.5 percent over March 2004 payments.

Motor vehicle fuel tax collections declined $4,262,614 or 28.5 percent from last year's collections to $10,674,912.

Gasoline tax collections were $39,488,310, a decrease of $3,202,803 or 7.5 percent when compared to last year's collections.

Tobacco tax collections were $7,760,758, a decline of $2,062,845 or 21.0 percent from last year's collections.

Collections from the privilege taxes were $14,244,275, down $1,045,541 or 6.8 percent below March 2004 collections.

The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2003-2004 fiscal year, the department collected $9.1 billion in state taxes and fees. In addition to collecting state taxes, $1.6 billion of local sales tax was collected by the department for local governments during the 2003-2004 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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