TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
JUNE 2006 COLLECTIONS

NASHVILLE, Tenn. - June 2006 collections of the Tennessee Department of Revenue were $1,104,468,896, an increase of $54,946,001 or 5.2 percent over June 2005 collections.

Sales and use tax collections were $553,871,734, up $39,026,954 or 7.6 percent over June 2005 collections. The retail trade group was up 2.5 percent over last year's collections. Furniture stores (up 16.6 percent) and building materials stores (up 5.8 percent) contributed to the increase in collections for the retail sector. Sales tax receipts from the services group were up 4.7 percent, with increased collections in business services (up 5.5 percent) leading the group. Collections from the non-retail, non-services group were up 17 percent, with increases in the communications (up 22.8 percent), wholesale trade (up 22.9 percent), transportation (up 93.5 percent) and electricity, gas and sanitary services (up 15 percent) sectors accounting for large increases. Offsetting these increases in the non-retail, non-services group was a decrease in the manufacturing (down 5.6 percent) sector. Consumer use tax collections were up 77.6 percent over June 2005 collections.

Franchise and excise tax collections were $255,859,170, up $17,560,741 or 7.4 percent when compared to June 2005 collections. Separately, franchise tax collections were $91,512,057, up $5,983,847 or 7 percent over last year. Excise tax collections were $164,347,113, up $11,576,894 or 7.6 percent over June 2005 collections.

Business tax collections were $104,058,863, an increase of $4,602,966 or 4.6 percent over June 2005 collections.

Inheritance, gift and estate tax collections increased $2,738,389 or 138.8 percent over last year's collections to $4,711,233.

Motor vehicle registrations were $24,952,083, falling short of last year's collections by $7,422,725 or 22.9 percent.

Gasoline tax collections declined $2,245,591 or 4.2 percent from collections in the same period last year to $50,982,722.

Collections from the tobacco tax were $10,462,442, a decrease of $1,880,676 or 15.2 percent from June 2005 collections.

Motor vehicle fuel tax collections were $14,076,795, declining 6.7 percent or $1,017,805 from 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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