TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
AUGUST 2005 COLLECTIONS

NASHVILLE, Tenn. - August 2005 collections of the Tennessee Department of Revenue were $737,967,873, an increase of $45,955,449 or 6.6 percent over August 2004 collections.

Sales and use tax collections were $532,555,068, up $29,179,109 or 5.8 percent over August 2004 collections. The retail trade group was up 5.8 percent over last year's collections. Auto dealers and service stations (up 10.8 percent), eating and drinking places (up 5.3 percent), general merchandise stores (up 4.2 percent), miscellaneous retail stores (up 6 percent), building materials stores (up 4.2 percent), furniture stores (up 6.3 percent), and apparel and accessory stores (up 7.7 percent) accounted for most of the increase. Sales tax receipts from the services group were up 6.4 percent, with increased collections in business services (up 7.9 percent), hotels and lodging places (up 8.8 percent), and other services (up 48.3 percent) providing most of the increase. Collections from the non-retail, non-services group were up 6.3 percent, with increases in the communications sector (up 8.1 percent), manufacturing (up 6 percent), and wholesale trade (up 4.2 percent) accounting for most of the increase. Consumer use tax collections were up 336.6 percent over August 2004 collections.

Franchise and excise tax collections were $33,675,843, up $8,066,234 or 31.5 percent when compared to August 2004 collections. Separately, franchise tax collections were $13,198,768, down $3,103,214 or 19 percent from last year. Excise tax collections were $20,477,074, an increase of $11,169,448 or 120 percent over August 2004 collections.

Collections from the inheritance, gift and estate taxes were $7,332,381, an increase of $2,618,298 or 55.5 percent compared to collections in the same period one year ago.

Motor vehicle registrations totaled $19,173,673, an increase of $2,054,169 or 12 percent over August 2004 registrations.

Collections from the privilege taxes were $21,446,105, an 8.2 percent or $1,618,343 gain over total privilege taxes collected in the same period last year.

Gross receipts tax collections were $12,674,423, an increase of $1,574,883 or 14.2 percent over August 2004 collections.

Tobacco tax collections were $12,063,536, an increase of $1,431,350 or 13.5 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 August 2004 payments.

Gasoline tax collections declined $3,322,049 or 6.3 percent from last year's collections to $49,045,785.

The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2004-2005 fiscal year, the department collected $9.6 billion in state taxes and fees. In addition to collecting state taxes, $1.7 billion of local sales tax was collected by the department for local governments during the 2004-2005 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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