August 2019 Net Tax Revenue Down 2.8%

Gov. Brian Kemp announced today that Georgia’s net tax collections for August totaled roughly $1.75 billion, for a decrease of $50.3 million, or -2.8 percent, compared to August 2018, when net tax collections totaled just over $1.80 billion.  Year-to-date, net tax revenue collections totaled nearly $3.59 billion, for an increase of $5.4 million, or 0.2 percent, compared to FY 2019 after two months.

The changes within the following tax categories account for August’s overall net tax revenue decrease:
 
Individual Income Tax:  Individual Income Tax collections during the month totaled $880.1 million, down from $939.4 million in August 2018, for a decrease of $59.3 million, or -6.3 percent.

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

• Individual Income Tax refunds issued (net of voided checks) were down $26.4 million, or -27.4 percent
• Individual Withholding payments fell by $90.9 million, or -9.4 percent, compared to last fiscal year
• Individual Income Tax Return payments increased by $4 million, or 31.6 percent, over last year
• All other Individual Tax categories, including Income Tax Return payments, were up a combined $1.2 million

Sales and Use Tax:  Gross Sales and Use Tax collections increased by $62 million, or 6.1 percent, in August, up from roughly $1.02 billion in FY 2019.  Net Sales and Use Tax, which totaled $535.6 million for the month, increased $17.4 million, or 3.4 percent, compared to last year.  The adjusted Sales Tax distribution to local governments totaled $537.3 million, for an increase of $43.5 million, or 8.8 percent, compared to August 2018.  Lastly, Sales Tax refunds increased by nearly $1.2 million, or 28.2 percent, over last year.

Corporate Income Tax:  Corporate Income Tax collections totaled roughly $5.3 million, which was a decrease of $12.7 million, or -70.8 percent, compared to last year when net Corporate Tax revenues totaled nearly $18 million.

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

• Corporate Tax refunds issued (net of voided checks) increased by $3.5 million, or 21 percent
• Corporate Income Tax Return payments decreased by roughly $10 million, or -68.8 percent, from FY 2019
• All other Corporate Tax categories, including Estimated Tax payments, were up a combined $0.8 million

Motor Fuel Taxes:  Motor Fuel Tax collections during the month increased by $2.4 million, or 1.6 percent compared to August 2018 when Motor Fuel Tax collections totaled roughly $153.7 million.   

Motor Vehicle - Tag & Title Fees:  Motor Vehicle Tag & Title Fee collections decreased by almost $0.2 million, or -0.5 percent, compared to August 2018.  Title ad Valorem Tax (TAVT) collections totaled $71.5 million, for a decrease of roughly $1 million, or -1.3 percent, compared to the previous fiscal year.