The State of Georgia reported a significant increase in its net tax revenue collections for March, totaling $2.5 billion. This marks an increase of $163.3 million, or 7 percent, compared to the same period last year. The growth is a significant contrast to the nearly $2.34 billion collected in March 2024. Year-to-date, the state’s net tax revenue stands at approximately $24.04 billion, up by $543.1 million, with a substantial portion attributed to the motor fuel excise tax collection. This tax was previously suspended for two and a half months during FY 2024 under an Executive Order. Excluding the variations in the motor fuel tax year-over-year, the net tax revenue from the period ending March 31 saw a more modest increase of $82.8 million or 0.4 percent.
Breaking down the figures across different tax categories, the Individual Income Tax collections reached $1.13 billion in March, increasing by $131.3 million or 13.2 percent compared to the previous year. “Individual Income Tax refunds issued (net of voided checks) increased by $67.3 million or 10.6 percent,” reflecting a notable trend within the category. Furthermore, income tax withholding payments rose by $149.7 million, or 10.5 percent, over March FY 2024. There was also an increase in individual income tax return payments by $27.2 million, or 28.5 percent, with all other categories combined adding $21.7 million to the total.
Sales and Use Tax figures also saw growth, with gross collections at $1.44 billion, up by $18.2 million or 1.3 percent from FY 2024, resulting in a net increase of $61.2 million or 9.7 percent year-over-year. The tax distribution to local governments was adjusted to nearly $728 million, a decrease of $2.8 million, while sales tax refunds dropped significantly by $40.2 million or 66.2 percent.
Conversely, Corporate Income Tax collections declined by $29.7 million or 8.3 percent from March 2024’s $356.7 million. “Corporate Income Tax refunds issued (net of voids) were down $34.2 million or 38.5 percent from FY 2024,” while estimated payments increased dramatically by $54.9 million or 972.4 percent. However, return payments decreased by $70.1 million or 31.2 percent, with other corporate tax payments falling by a total of $48.6 million.
In the category of motor fuel taxes, there was a slight decrease of $2.1 million or 1.2 percent, compared to last March’s $178.2 million. The area of motor vehicle-related taxes showed mixed results; motor vehicle tag and title fees rose by $7.8 million or 25.5 percent, while the Title Ad Valorem Tax collections fell by $0.3 million or 0.4 percent.
