December Tax Revenues Down 5%; Adjusted YTD Down 2.5%

The State of Georgia’s net tax collections in the month of December totaled nearly $3.05 billion, for a decrease of $159.1 million, or -5 percent, compared to December 2022, when net tax collections approached $3.21 billion for the month. Year-to-date, net tax revenue totaled roughly $16.1 billion, for an increase of $253 million, or 1.6 percent, over the same half-year stretch in FY 2023, an increase that was driven principally by the collection of the state’s motor fuel excise tax that was suspended during the first half of last year. Net of motor fuel tax changes, revenues for the six months ended December 31 were down 2.5 percent from this time a year ago.

The changes within the following tax categories account for December’s overall net tax revenue decrease:

Individual Income Tax: Individual Income Tax collections for December approached $1.39 billion, down from a total of nearly $1.44 billion in fiscal year 2023, for a decrease of $52.2 million or -3.6 percent.

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

• Individual Income Tax refunds issued (net of voided checks) increased by $66.6 million or 114 percent
• Income Tax Withholding payments increased by $61.3 million or 4.6 percent over December FY 2023
• Individual Income Tax Estimated payments decreased by $23.1 million or -37.9 percent from FY 2023
• All other Individual Tax categories, including Tax Return payments, were down a combined $23.8 million

Sales and Use Tax: Gross Sales and Use Tax collections for December totaled $1.52 billion, for an increase of $41 million or 2.8 percent over FY 2023. Net Sales and Use Tax increased by $10.6 million or 1.4 percent compared to last year, when net Sales Tax totaled $747 million. The adjusted Sales Tax distribution to local governments totaled $745.4 million for an increase of $15.9 million, while Sales Tax refunds increased by $14.5 million.

Corporate Income Tax: Corporate Income Tax collections for the month decreased by $136.7 million, or -16.1 percent, compared to last year, when net Corporate Tax revenues totaled $848.8 million in December.

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

• Corporate Income Tax refunds issued (net of voids) were up $13.7 million or 64.7 percent over FY 2023
• Corporate Income Tax Estimated payments decreased by $109 million or -19.3 percent from last year
• Corporate Income Tax Return payments decreased by $22.2 million or -21.6 percent from December 2022
• All other Corporate Tax payments, including S-Corporation payments, were up a combined $8.2 million

Motor Fuel Taxes: Monthly Motor Fuel Tax collections increased by $11.9 million over last year, when Governor Kemp’s Executive Order to suspend the state excise tax was also in effect during the entire month. The suspension of the collection of the motor fuel tax was extended on November 8th and in effect through November 29.

Motor Vehicle – Tag, Title & Fees: Motor Vehicle Tag & Title Fee collections for the month decreased by $1.8 million or -5.8 percent, while Title ad Valorem Tax (TAVT) collections increased by $2.8 million or 4.4 percent from FY 2023.