State tax revenues continue downward slide

Credit: Capitol Beat News

ATLANTA – Georgia tax collections continued to fall last month, dropping 1.1% compared to May of last year, the state Department of Revenue reported Friday.

With just one month remaining in the current fiscal year, tax revenues are down by 1.2% compared to the first 11 months of fiscal 2023. However, that doesn’t account for the fact the state wasn’t collecting sales taxes on gasoline and other motor fuels during the first half of the last fiscal year.

As a result, the 11 months that ended May 31 saw a net decrease in tax revenues of 4.3% from fiscal 2023.

Individual income tax receipts for May were down 3.3% compared to the same month last year, driven largely by a 32.9% decline in individual tax return payments.

Net sales tax collections rose slightly last month, increasing by 0.4% compared to May a year ago.

Corporate incomes taxes fell by 35.1% percent in May due to the combination of a 23.1% decline in payments and a huge increase of 497.5% in refunds issued by the revenue agency.

With the state likely to show tax revenues down at the end of fiscal 2024 June 30, Gov. Brian Kemp has been warning of leaner times ahead. However, the $16 billion budget surplus the state has built up during the last three years should provide ample cushion to avoid major spending cuts.

This story comes to GPB through a reporting partnership with Capitol Beat.