Peach Tree Times

The State of Georgia reported a decline in net tax collections for October, totaling $2.53 billion, which represents a decrease of $89.7 million or 3.4% compared to the same period in FY 2024 when collections were $2.62 billion. For the year-to-date, net tax revenue amounted to nearly $10.64 billion, marking a drop of $61.1 million or 0.6% from October 2023.

The figures have been influenced by several factors, including the suspension of motor fuel taxes in 2023 and hurricane-related extensions for income tax filing and payment deadlines announced on October 3rd. These extensions are expected to affect individual and corporate income tax collections until May 1, 2025.

A breakdown of the main categories shows:

Individual Income Tax collections fell by $119.6 million or 8.7%, reaching approximately $1.26 billion in October compared to nearly $1.38 billion in fiscal year 2024.

- Individual Income Tax refunds issued decreased by $27.2 million or 10%.

- Income Tax Withholding payments dropped by $49.3 million or 3.8%.

- Individual Income Tax Return payments declined by $104.3 million or 36.5%.

- Other Individual Tax categories saw an increase of a combined $6.8 million.

Sales and Use Tax collections rose slightly by $2.3 million or 0.2%, amounting to gross sales of $1.51 billion; however, net sales fell by $7.5 million or 1%. The distribution to local governments was reduced by $4.3 million while Sales Tax refunds increased significantly by $14.l million.

Corporate Income Tax experienced a sharp decrease with collections dropping by $62.l8 million or l47 .4%.

- Corporate Income Tax refunds increased substantially.

- Corporate Income Tax Return payments decreased significantly.

- Other Corporate Tax payments saw a minor decline.

Motor Fuel Taxes showed significant growth with an increase of$105 .6millionor l46.l %due tothe expirationof Governor Kemp's executive order that had suspended fuel taxes previously .

Motor Vehicle Tag & Title Fee collections remained stable at$32.lmillion whileTitle ad ValoremTax(TAVT)collections droppedby$6 .2millionor8 .5%.