Peach Tree Times

Atlanta, GA – The State of Georgia has seen a decrease in its net tax collections, with revenues for the nine months ended March 31 down 4.3 percent from the previous year. This decline is attributed to various factors affecting different tax categories.

According to the State's report, Individual Income Tax collections experienced a significant decrease. Georgia Department of Revenue Commissioner, David Curry, stated, "Individual Income Tax collections totaled $998.3 million, for a decrease of $191.2 million or 16.1 percent compared to last year." This reduction is partly due to the planned income tax rate reduction that took effect in January 2024.

In addition, Sales and Use Tax collections showed mixed results. Gross Sales and Use Tax collections increased, but net Sales and Use Tax decreased by $29.7 million or 4.5 percent compared to the previous year. The adjusted Sales Tax distribution to local governments, however, saw an increase.

Corporate Income Tax collections also experienced a downturn, with a decrease of roughly $141 million or 28.3 percent compared to the previous fiscal year. The decrease in Corporate Income Tax was influenced by various factors, including an increase in tax refunds issued and a decrease in Estimated payments.

On the other hand, Motor Fuel Tax collections saw an increase of $21.2 million or 13.5 percent over the previous year, while Motor Vehicle Tag & Title Fees decreased by $4.8 million. Title Ad Valorem Tax (TAVT) collections, however, increased by $5.3 million.

The overall decrease in net tax revenues for the State of Georgia is a matter of concern, with adjustments needed to address the challenges faced in various tax categories.