June Net Tax Revenues Up 29.1%; FY 2021 Up 13.5%

The State of Georgia’s June net tax collections totaled $2.50 billion for an increase of $563.1 million, or 29.1 percent, compared to June 2020 when net tax collections totaled nearly $1.94 billion as of June 30, 2020.  For the year-ended June 30, 2021, net tax collections totaled almost $26.90 billion for an increase approaching $3.20 billion, or 13.5 percent, compared to Fiscal Year 2020 (FY ’20), when the final net tax revenues – adjusted as of August 7, 2020, to include deferred FY ’20 related tax deadline payments received in July of FY ’21 – totaled $23.70 billion. 

FY 2020 net collection revenues were adjusted to include a total of $952.7 million – $703.8 million in net Individual Tax payments and $248.9 million in net Corporate Tax payments – tax filing deadline payments that were received in July 2020, but specifically identified as applicable to FY ‘20.  The initial year-end reporting of FY ‘20 net collections (as of June 30) was not final due to the deferral of the state tax filing deadline in accordance with federal tax filing guidelines that shifted the 2019 individual and corporate tax year payment deadlines to July 15, 2020.  The state’s concurrence with last year’s payment deadline shift substantiated a one-time revenue accrual of FY ’20 related tax filing receipts received after the traditional close of the fiscal year, thereby ensuring proper revenue recognition for the purpose of providing an appropriate successive year financial comparison with both FY 2019 (presented August 7, 2020) and the recently completed FY 2021, as of June 30 (July 2021 press release).

Individual Income Tax:  Net Individual Income Tax collections for June totaled roughly $1.30 billion, for an increase of $256.8 million, or 24.7 percent, compared to FY 2020 when net Individual Tax revenues totaled nearly $1.04 billion.

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

• Individual Income Tax refunds issued (net of voided checks) declined by $0.6 million, or -0.4 percent
• Individual Withholding payments increased by nearly $101.6 million, or 10.1 percent, from FY 2020
• Individual Income Tax Estimated payments were up $124.3 million, or 226 percent, over last year
• All other categories, including Income Tax Return payments, were up a combined $30.3 million

Sales and Use Tax:  Gross Sales and Use Tax collections increased by roughly $248.9 million, or 23.9 percent, to a total of almost $1.29 billion in FY ‘21.  Net Sales and Use Tax increased by $127.4 million, or 24.6 percent, compared to last year’s total of $517.5 million.  The Sales Tax distribution to local governments totaled roughly $629.6 million for an increase of $115.9 million, or 22.6 percent, while Sales Tax Refunds increased by $5.6 million from FY 2020.

Corporate Income Tax:  Net Corporate Income Tax collections for the month totaled $325.8 million, which was an increase of $227.5 million, or 231.6 percent, over last year when net Corporate Tax revenues totaled $98.3 million.

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

• Corporate Income Tax refunds (net of voids) were down $20.4 million, or -64.4 percent, from FY 2020
• Corporate Income Tax Estimated payments increased by $194.5 million, or 194.4 percent, over last year
• Corporate Income Tax Return payments were up $13.6 million, or 70.9 percent, compared to FY 2020  
• All other Corporate Tax categories, including S-Corp tax payments, were down a combined $1 million

Motor Fuel Taxes:  Motor Fuel Tax collections were down $82.8 million, or -59.2 percent, compared to last year, when motor fuel tax collections totaled nearly $140 million.  The significant reduction in the number of taxable motor fuel gallons sold was the result of a supply crunch caused by the May 7 cyberattack on critical fuel line infrastructure across the Southeast.  In reaction to the severe fuel supply shortage, the Governor’s State of Emergency Executive Order directed the temporary suspension of the collection of the Motor Fuel Excise Tax on both gasoline and diesel for a period of roughly three weeks beginning May 10 and ending June 2, 2021.

Motor Vehicle - Tag & Title Fees:  Motor Vehicle Tag & Title Fees increased by $1.4 million, or 4.6 percent, in June, while Title Ad Valorem Tax (TAVT) collections increased by roughly $24.6 million, or 56.3 percent, over FY 2020.