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February Net Tax Revenues Fall 4.3%; Adjusted YTD Down 3.1%

Brian Kemp

 

Atlanta, GA – The State of Georgia’s net tax collections in February totaled more than $2.03 billion, for a decrease of $92.3 million or 4.3 percent compared to FY 2023, when net tax collections totaled $2.12 billion for the month. Year-to-date, net tax revenue totaled roughly $21.15 billion, for an increase of $223.4 million or 1.1 percent over the same period in FY 2023, an increase that was driven principally by the collection of the state’s motor fuel excise tax, which was suspended during much of the first eight months of last year. Net of motor fuel tax changes, revenues for the eight months ended February 29 were down 3.1 percent from this time a year ago.

The changes within the following tax categories help to further explain February’s overall net tax revenue decrease.

Individual Income Tax: Individual Income Tax collections totaled $878.8 million, for a decrease of almost $205 million or 18.9 percent compared to last year when Individual Tax collections totaled $1.08 billion.

The following notable components within Individual Income Tax combine for the net decrease:

• Individual Income Tax refunds issued (net of voided checks) were up $159.8 million or 53.5 percent.
• Individual Withholding payments declined by $39.6 million or 3.1 percent from the previous year.
• All other Individual Tax categories, including Estimated payments, were down a combined $5.6 million.

Sales and Use Tax: Gross Sales and Use Tax collections totaled roughly $1.41 billion in February, for an increase of $43.4 million or 3.2 percent compared to February 2023. Net Sales and Use Tax increased by $20.3 million or 3.0 percent compared to last year, when net sales tax totaled $680.7 million. The adjusted Sales Tax distribution to local governments approached $706 million, for an increase of nearly $37.9 million or 5.7 percent, while Sales Tax refunds declined by $14.8 million or 65.1 percent compared to FY 2023.

Corporate Income Tax: Corporate Income Tax collections for February totaled $88.9 million, which was an increase of $40.7 million or 84.4 percent compared to last year.

The following notable components within Corporate Income Tax make up the net increase:

• Corporate Income Tax refunds issued (net of voided checks) were up $16.1 million or 106.5 percent.
• Corporate Income Tax Return payments increased by $26.2 million or 141.3 percent over FY 2023.
• All other Corporate Tax types, including Corporate Estimated payments, were up a combined $30.6 million.

Motor Fuel Taxes: Motor Fuel Tax collections increased by $57.6 million or 48.4 percent over FY 2023, when Governor Kemp’s Executive Order to suspend the state excise tax was in effect through January 10, 2023.

Motor Vehicle – Tag & Title Fees: Motor Vehicle Tag & Title Fees increased by $0.4 million or 0.9 percent for the month, while Title Ad Valorem Tax (TAVT) collections increased by $5.3 million or 7.5 percent over last year’s total of $70.5 million.

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