TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
SEPTEMBER 2005 COLLECTIONS

NASHVILLE, Tenn. - September 2005 collections of the Tennessee Department of Revenue were $945,772,635, an increase of $94,962,827 or 11.2 percent over September 2004 collections.

Sales and use tax collections were $537,584,742, up $50,423,786 or 10.4 percent over September 2004 collections. The retail trade group was up 6.7 percent over last year's collections. Auto dealers and service stations (up 6.2 percent), food stores (up 7.8 percent), eating and drinking places (up 6.5 percent), miscellaneous retail stores (up 7.2 percent), building materials stores (up 8.2 percent), general merchandise stores (up 4.3 percent), and furniture stores (up 12 percent) accounted for most of the increase. Sales tax receipts from the services group were up 6.7 percent, with increased collections in business services (up 8.1 percent) and hotels and lodging places (up 9.2 percent) providing most of the increase. Collections from the non-retail, non-services group were up 23 percent, with increases in the wholesale trade (up 44.7 percent), manufacturing (up 24.2 percent), communications (up 9.2 percent), and electricity, gas and sanitary services (up 8.3 percent) sectors accounting for most of the increase. Consumer use tax collections were up 193.8 percent over September 2004 collections.

Franchise and excise tax collections were $240,005,091, up $36,976,117 or 18.2 percent when compared to September 2004 collections. Separately, franchise tax collections were $90,301,252, up $10,150,058 or 12.7 percent over last year. Excise tax collections were $149,703,839, an increase of $26,826,059 or 21.8 percent over September 2004 collections.

Collections from the privilege taxes were $25,218,121, a 27.7 percent or $5,473,516 gain over total privilege taxes collected in the same period last year.

Individual income tax collections were $2,556,126, an increase of $1,990,644 or 352 percent over collections in September 2004.

Gasoline tax collections increased $1,987,598 or 3.8 percent over last year's collections to $54,741,929.

Collections from the inheritance, gift and estate taxes were $5,788,427, a decrease of $2,754,094 or 32.2 percent compared to collections in the same period one year ago.

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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