TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
MAY 2005 COLLECTIONS

NASHVILLE, Tenn. - May 2005 collections of the Tennessee Department of Revenue were $733,841,850, an increase of $18,267,820 or 2.6 percent over May 2004 collections.

Sales and use tax collections were $510,638,654, up $24,310,184 or 5 percent over May 2004 collections. The retail trade group was up 4.6 percent over last year's collections. Eating and drinking places (up 11.3 percent), building materials stores (up 9.9 percent), general merchandise stores (up 3.2 percent), miscellaneous retail stores (up 3.6 percent), and food stores (up 2.8 percent) accounted for most of the increase. Sales tax receipts from the services group were up 1.4 percent, with increased collections in hotel and lodging places (up 14.9 percent) providing most of the increase. Collections from the non-retail, non-services group were down 0.4 percent, with increases in manufacturing (up 43.9 percent) overshadowed by a decline in the communications sector (down 23.8 percent). Consumer use tax collections were up 202.7 percent over collections in the same period last year.

Franchise and excise tax collections were $40,505,413, up $9,360,362 or 30.1 percent when compared to May 2004 collections. Separately, franchise tax collections were $11,699,146, down $1,768,099 or 13.1 percent from last year. Excise tax collections were $28,806,267, an increase of $11,128,461 or 63 percent over May 2004 collections.

Tobacco tax collections were $10,689,263, an increase of $1,368,185 or 14.7 percent over last year's collections.

Gasoline tax collections were $52,433,712, $1,302,614 or 2.6 percent greater than collections in the same period last year.

TVA payments in-lieu-of gross receipts taxes were $18,038,751, an increase of $1,282,969 or 7.7 percent over May 2004 payments.

Motor vehicle registrations were $19,173,358, a decrease of $13,981,408 or 42.2 percent when compared to last year's collections.

Collections from the inheritance, gift and estate taxes were $2,248,945, a decrease of $4,598,952 or 67.2 percent compared to collections in the same period one year ago.

Motor vehicle fuel tax collections were $13,053,374, a decrease of $1,406,939 or 9.7 percent from last year's 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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