Georgia Sees Dip in Net Tax Collections Across Categories

Georgia’s Net Tax Collections See a Dip in April

In the financial landscape of Georgia, April’s net tax collections presented a downturn, amounting to $3.96 billion—a decrease of $225.7 million or 5.4 percent compared to the same month in the previous fiscal year (FY 2023), when collections were nearly $4.19 billion.

When examining the year-to-date figures, the state’s net tax revenue also experienced a contraction. Totals reached $27.45 billion, marking a decrease of $341.3 million or 1.2 percent in comparison to the corresponding ten-month period in FY 2023. It’s important to note that during a portion of this period, Georgia had suspended its motor fuel excise tax, which was reinstated on January 10, 2023. Excluding the motor fuel tax changes, revenue collections for the ten months ending April 30 were down by 4.6 percent from the previous fiscal year.

Diving deeper into the numbers, various tax categories have contributed to April’s overall decline in net tax revenue. The Individual Income Tax collections stood at approximately $1.97 billion, an 8 percent decrease from last year’s $2.14 billion. This net decrease can be attributed to several factors:

  • A significant rise of 31.4 percent in Individual Income Tax refunds issued (net of voided checks).
  • An increase of 4.8 percent in Individual Withholding payments over the prior fiscal year.
  • A decline of 11.5 percent in Individual Income Tax Return payments.
  • An overall increase in all other Individual Tax categories, including Estimated payments, by $106 million.

The Sales and Use Tax category also saw a marginal dip with Gross Sales and Use Tax collections at nearly $1.58 billion, down by 0.4 percent compared to April 2023. The net Sales and Use Tax decreased by 3 percent from the previous year, while the adjusted distribution to local governments slightly increased by 1.1 percent and Sales Tax refunds surged by 179.6 percent.

In contrast, Corporate Income Tax collections experienced a marginal uptick of 0.5 percent, totaling $748.1 million for the month. This increase was influenced by a decrease in Corporate Income Tax refunds and a combined increase of $2.6 million in other Corporate Tax types, despite a decrease in Corporate Income Tax Return payments.

Lastly, Motor Fuel Tax collections saw an increase of 1.6 percent compared to FY 2023, while Motor Vehicle Tag & Title Fees rose by 9.3 percent. However, Title Ad Valorem Tax (TAVT) collections fell by 7.8 percent from the previous year.

The fluctuations across these tax categories offer a nuanced view of Georgia’s fiscal health and will likely inform future economic strategies and policies within the state.

tax revenue

What caused Georgias 4.6% drop in tax revenue for FY 2023?

Georgias 4.6% tax revenue decline in FY 2023 was primarily due to a sluggish economy, reduced consumer spending, and the expiration of temporary tax measures.

Does Georgias tax revenue show a decline from fiscal year 2023?

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