April Net Tax Revenues Fall -35.9%
The State of Georgia’s April net tax collections totaled nearly $1.84 billion for a decrease of $1.03 billion, or -35.9 percent, compared to April 2019 when net tax collections totaled $2.87 billion. Year-to-date, net tax collections totaled $19.23 billion for a decrease of nearly $680 million, or -3.4 percent, compared to the previous fiscal year when net tax revenues totaled $19.91 billion.
Changes within the following tax categories for April are largely attributable to the economic impact of the Coronavirus pandemic. In particular, the shifting of payment deadlines related to Motor Vehicle, Corporate Tax and especially Individual Income Tax, have had a profound impact on typical State revenue collection activity, resulting in the dramatic reduction of April and year-to-date FY 2020 tax revenues as outlined below:
Individual Income Tax: Individual Income Tax collections for April declined by $732 million, or -46.2 percent, down from April 2019 when net Individual Tax revenues totaled roughly $1.58 billion.
The following notable components within Individual Income Tax combine for the net decrease:
- Individual Income Tax refunds issued (net of voided checks) decreased by $253.6 million or -44.3 percent
- Individual Income Tax Return payments decreased by $830.9 million, or -88.9 percent, from last year
- Individual Withholding payments for the month were up $15.4 million, or 1.6 percent, over last year
- All other categories, including Non-Resident income tax payments, were down a combined $170.1 million
Sales and Use Tax: Gross Sales and Use Tax collections totaled $995.7 million for the month, which was a decrease of roughly $107 million, or -9.7 percent, compared to April 2019. Net Sales and Use Tax declined by $82.4 million, or -14.3 percent, compared to fiscal year 2019, when net sales tax totaled $574.6 million. The adjusted Sales Tax distribution to local governments totaled $491.4 million for a decrease of $33.4 million, or -6.4 percent, from April 2019. Lastly, Sales Tax Refunds increased by nearly $8.8 million compared to FY 2019.
Corporate Income Tax: Net Corporate Income Tax collections decreased by nearly $219.1 million, or -70.6 percent, compared to FY 2019 when net Corporate Tax revenues totaled $310.4 million.
The following notable components within Corporate Income Tax make up the net decrease:
- Corporate Income Tax refunds (net of voids) decreased by $11.6 million, or -51.4 percent, from last year
- Corporate Income Tax Estimated payments received were down $122.7 million or -64.5 percent
- Corporate Income Tax Return payments decreased by $99.4 million or -78.3 percent
- All other Corporate Tax types, including S-Corp tax payments, were down a combined $8.6 million
Motor Fuel Taxes: Motor Fuel Tax collections increased by $80.3 million, or 50.9 percent, compared to FY 2019 on the strength of larger than ordinary, one-time settlement payments resulting from ongoing audit activities.
Motor Vehicle - Tag & Title Fees: Motor Vehicle Tag & Title Fees fell by roughly $16.3 million, or -43.4 percent, in April while Title Ad Valorem Tax (TAVT) collections declined by $22.7 million, or -30.7 percent, compared to FY 2019.