TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
JUNE 2005 COLLECTIONS

NASHVILLE, Tenn. - June 2005 collections of the Tennessee Department of Revenue were $1,049,522,896, an increase of $81,039,613 or 8.4 percent over June 2004 collections.

Sales and use tax collections were $514,844,780, up $26,199,800 or 5.4 percent over June 2004 collections. The retail trade group was up 4 percent over last year's collections. Building materials stores (up 13.5 percent), miscellaneous retail stores (up 11.2 percent), eating and drinking places (up 5.2 percent), and general merchandise stores (up 2.8 percent) accounted for most of the increase. Sales tax receipts from the services group were up 5.1 percent, with increased collections in business services (up 6.1 percent) and automotive repair, services and parking (up 7.5 percent) providing most of the increase. Collections from the non-retail, non-services group were up 7.3 percent, with increases in manufacturing (up 11.6 percent), wholesale trade (up 8.7 percent), and the communications sector (up 3.7 percent) accounting for most of the increase. Consumer use tax collections were down 57.4 percent from June 2004 collections.

Franchise and excise tax collections were $238,298,429, up $13,677,640 or 6.1 percent when compared to June 2004 collections. Separately, franchise tax collections were $85,528,210, up $4,096,803 or 5 percent over last year. Excise tax collections were $152,770,219, an increase of $9,580,837 or 6.7 percent over June 2004 collections.

Business tax collections were $99,455,897, an increase of $19,867,343 or 25 percent over June 2004 collections.

Motor vehicle registrations were $32,374,808, an increase of $11,442,611 or 54.7 percent when compared to last year's collections.

Collections from the privilege taxes were $46,920,238, 17.7 percent or $7,056,957 over total privilege taxes collected in the same period last year.

Motor vehicle fuel tax collections were $15,094,601, an increase of $2,020,324 or 15.5 percent over last year's collections.

Gasoline tax collections were $53,228,313, a rise of $1,769,412 or 3.4 percent over collections in the same period last year.

Tobacco tax collections were $12,343,118, an increase of $1,458,332 or 13.4 percent over last year's collections.

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

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.

###