December Net Tax Revenues Up 7.5%

The State of Georgia’s net tax collections in December totaled nearly $3.21 billion, for an increase of $224.9 million, or 7.5 percent, compared to December 2021 when net tax collections totaled $2.98 billion. Year-to-date, net tax collections totaled $15.82 billion, for an increase of $966.6 million, or 6.5 percent, over FY 2022 through six months.

The changes within the following tax categories account for December’s overall net tax revenue increase:

Individual Income Tax: Net Individual Income Tax collections totaled roughly $1.44 billion, for a decrease of $100.1 million, or -6.5 percent, compared to FY 2022 when net Individual Tax revenues totaled $1.54 billion.

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

• Individual Income Tax refunds issued (net of voided checks) increased by $17.1 million or 41.4 percent
• Individual Withholding payments decreased by $55.1 million, or -4 percent, compared to last year
• Individual Income Tax Return payments increased $15.7 million, or 114.9 percent, over last year
• All other Individual Tax categories, including Estimated Return payments, were down a combined $43.6 million

Sales and Use Tax: Gross Sales and Use Tax collections totaled $1.48 billion, for an increase of $108.3 million, or 7.9 percent, over last year’s total of $1.37 billion. Net Sales and Use Tax for the month increased by $52.2 million, or 7.5 percent, compared to December 2021, when net Sales Tax revenue totaled $694.8 million. The adjusted Sales Tax distribution to local governments totaled $729.6 million, for an increase of $59.1 million, or 8.8 percent, over FY 2022. Lastly, Sales Tax refunds decreased by $3.1 million, or 44.4 percent compared to the previous year.

Corporate Income Tax: Net Corporate Income Tax collections totaled $848.8 million, for an increase of $442.4 million, or 108.9 percent, over last year when net Corporate Tax revenues totaled $406.4 million in December.

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

• Corporate Tax refunds issued (net of voided checks) increased by $2.5 million, or 13.6 percent, over FY ‘22
• Corporate Income Tax Estimated Return payments were up $236.8 million, or 72.4 percent, over last year
• All other Corporate Tax payments, including Corporate Return payments, were up a combined $208.1 million

Motor Fuel Taxes: Motor Fuel Tax collections for December decreased by $173.1 million, or -104.2 percent, compared to last year’s total of $166.1 million, as a result of Governor Kemp’s Executive Orders to extend the temporary suspension of the Motor Fuel Excise Tax until January 10th of 2023.

Motor Vehicle - Tag & Title Fees: Motor Vehicle Tag & Title Fee collections for December fell by $2.7 million, or -7.8 percent, compared to FY 2022 when Motor Vehicle fees totaled $34.4 million, while Title ad Valorem Tax (TAVT) collections increased by $5.7 million, or 9.9 percent, compared to last year’s total of $58.3 million.