Georgia sees a rise in net tax revenues for May

The State of Georgia reported a notable increase in net tax collections for May, totaling $2.69 billion. This marks a rise of $224 million, or 9.1%, compared to the previous fiscal year when collections were approximately $2.47 billion. Governor Kemp's decision to extend the tax filing deadline due to hurricane-related disruptions resulted in many taxpayers submitting their payments by May 1, contributing significantly to this increase.

For the year-to-date period, net tax revenue reached $30.46 billion, up by $536.2 million. This growth was primarily driven by the collection of motor fuel excise taxes, which had been suspended for two and a half months during FY 2024. When adjusting for changes in motor fuel taxes, the year-to-date net tax revenue collections increased by $64.8 million or 0.2%.

In May, individual income tax collections amounted to nearly $1.33 billion, an increase of $102.3 million or 8.3% from the previous year’s total of $1.23 billion.

Noteworthy components contributing to this rise include:

- A 38.7% increase in individual income tax refunds issued.

- A decline in individual withholding payments by 3.2%.

- An increase in individual income tax return payments by 142.9%.

- A combined increase of $35.8 million in other individual tax categories.

Gross sales and use tax collections rose to roughly $1.6 billion, reflecting a 4.9% increase compared to FY 2024 figures.

The adjusted distribution of sales tax to local governments increased by 5.4%, while sales tax refunds decreased compared to last year.

Corporate income tax collections saw significant growth, reaching $121.2 million for May—a rise of $50.2 million or 70.8% over last year's figure.

Key factors included:

- A decline in corporate income tax refunds issued by 75.1%.

- An increase in corporate income tax return payments by 98.5%.

- A decrease of $11.6 million across other corporate tax types.

Motor fuel taxes increased slightly by 2.6%. Additionally, motor vehicle tag and title fees rose by 4.2%, and Title Ad Valorem Tax (TAVT) collections increased by 8.3%.