TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
SEPTEMBER 2006 COLLECTIONS

NASHVILLE, Tenn. - September 2006 collections of the Tennessee Department of Revenue were $977,411,966, an increase of $31,639,331 or 3.3 percent over September 2005 collections.

Sales and use tax collections were $553,587,432, up $16,002,691 or 3 percent over September 2005 collections. The retail trade group was up 2.4 percent over collections from last year. Contributing to the rise were building materials store (up 9.8 percent), eating and drinking places (up 5.2 percent), miscellaneous retail stores (up 5.8 percent), auto dealers and service stations (up 1.7 percent), and food stores (up 2.7 percent). Collections from general merchandise stores (up 0.3 percent) and apparel stores (down 18.8 percent) were expected to be weak because of Tennessee's first sales tax holiday, which occurred in August and is reflected in September retailers' reports. The estimated amount for the sales tax holiday was $14.8 million. Sales tax receipts from the services group were up 7 percent with increases by business services (up 7.3 percent) leading the group. Collections from the non-retail, non-services group were up 2.1 percent where increases in communications (up 11 percent), and electric, gas and sanitary services (up 13.7 percent) were offset by declines in wholesale trade (down 5.6 percent) and manufacturing (down 6.4 percent). Consumer use tax collections were down 6 percent from collections in September 2005.

Franchise and excise tax collections were $259,110,696, up $19,105,605 or 8 percent when compared to September 2005 collections. Separately, franchise tax collections were $88,617,189, down $1,684,063 or 1.9 percent from last year. Excise tax collections were $170,493,507, up $20,789,668 or 13.9 percent over September 2005 collections.

Motor vehicle registrations were $20,766,793, surpassing last year's collections by $3,108,440 or 17.6 percent.

Gasoline tax collections were $53,018,246, a 3.1 percent or $1,723,683 decline from collections in the same period one year ago.

Individual income tax collections decreased $1,629,875 or 63.8 percent from last year's collections to $926,251.

Business tax collections were $1,357,500, a decrease of $1,314,984 or 49.2 percent compared to September 2005 collections.

The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2005-2006 fiscal year, the department collected $10.3 billion in state taxes and fees. In addition to collecting state taxes, $1.8 billion of local sales tax was collected by the department for local governments during the 2005-2006 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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