TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS OF
DECEMBER 2007 COLLECTIONS

NASHVILLE, Tenn. –  December 2007 collections of the Tennessee Department of Revenue were $885,714,281, a decrease of $34,023,216 or 3.7 percent from December 2006 collections. 

Sales and use tax collections totaled $562,440,151, an increase of $25,078,785 or 4.7 percent over the December 2006 collections. 

Collections from the retail trade group increased 3 percent.  Items with significant changes include:  

• General merchandise stores: up 6.5 percent
• Furniture and home furnishings: up 11.8 percent
• Miscellaneous retail: up 4.2 percent
• Eating and drinking places: up 3.5 percent
• Food stores: up 2.9 percent
• Motor vehicle dealers and service stations: down 2.6 percent (with a 6.5 percent decline in the new, used motor vehicle sub-category item)

Collections from the service group decreased 0.5 percent from December 2006.  None of the service categories had a significant change.

Collections from the non-retail, non-services group increased 10.9 percent led by gains in communications (up 15 percent), wholesale trade (up 12.8 percent), and electric, gas and sanitation services (up 14.7 percent).

Consumer use collections were $234,954, a decline of $91,381 (28.0 percent) from December 2006.

Franchise and excise tax collections were $150,747,192, a decrease of $69,650,221 or 31.6 percent when compared to December 2006.  Separately, franchise tax collections were $51,401,976, an increase of $5,646,204 or 12.3 percent over last December.  The excise tax collection was $99,345,216, a decrease of $75,296,425 or 43.1 percent from December 2006.

Tobacco tax collections were $22,445,779, an increase of $11,731,236 or 109.5 percent over the collection of December 2006.

Motor vehicle fuel tax collections were $15,552,203, an increase of $4,547,194 or 41.3 percent from the prior December.

Inheritance and estate tax collections were $10,436,378, an increase of $2,837,482 or 37.3 percent from December 2006.

Gasoline tax collections were $48,969,091, a decline of $5,030,598 or 9.3 percent from December 2006.

Privilege tax collections were $18,290,861, a decrease of $2,556,116 or 12.3 percent compared to December 2006.

Petroleum special tax collections amounted to $4,315,343, a decrease of $1,316,346 or 23.4 percent from the prior December.

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 2006-2007 fiscal year, the department collected $11 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2006-2007 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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