For Immediate Release: March 10, 2008
TENNESSEE DEPARTMENT OF REVENUE PROVIDES ANALYSIS
OF FEBRUARY 2008 COLLECTIONS
NASHVILLE - February 2008 collections of the Tennessee Department of Revenue were $728,265,184, an increase of $11,825,339 or 1.7 percent from February 2007 collections.
Sales and use tax collections totaled $504,790,653, a decrease of $4,680,460 or 0.9 percent from February 2007 collections. Note that this is the first month reflecting the 0.5 percent lower tax rate for food items.
Collections from the retail trade group decreased 4.4 percent. Items with significant changes include:
Collections from the service group increased 3.9 percent from February 2007. The “other services” category was up 49.3 percent.
Collections from the non-retail, non-services group rose 5.6 percent led by gains in communications (up 13.9 percent), wholesale trade (up 4.4 percent), and electric, gas and sanitary services (up 8.1 percent). This was partially offset by manufacturing (down 5.1 percent).
Consumer use tax collections were $585,953, an increase of $344,210 (142.4 percent) from February 2007.
Franchise and excise tax collections were $38,226,628, a decrease of $5,972,867 or 13.5 percent when compared to February 2007. Separately, franchise tax collections were $15,104,837, an increase of $987,642 or 7 percent over last February. The excise tax collection was $23,121,790, a decrease of $6,960,489 or 23.1 percent from February 2007.
Tobacco tax collections were $23,091,341, an increase of $14,247,865 or 161.1 percent over the collection of February 2007.
Inheritance and estate tax collections were $9,873,625, an increase of $5,439,671 or 122.7 percent from February 2007.
Motor vehicle fuel tax collections were $18,587,838, an increase of $4,321,476 or 30.3 percent from February 2007.
Gasoline tax collections were $51,596,815, an increase of $2,911,154 or 6 percent from February 2007.
Privilege tax collections were $16,488,507, a decrease of $6,749,529 or 29.1 percent compared to February 2007.
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.TN.gov/revenue.