May Net Tax Revenues Up 1.6%

The State of Georgia’s net tax collections for May totaled almost $2.70 billion, for an increase of $41.8 million, or 1.6 percent, compared to May 2021, when net tax collections approached $2.66 billion.  Year-to-date net tax collections totaled nearly $30.24 billion, for an increase of $5.84 billion, or 23.9 percent, compared to fiscal year 2021, when net tax revenues totaled almost $24.40 billion as of the end of May.

Year-over-year comparisons of net tax collections for April and May are made difficult by the deferral of the previous year’s state tax filing deadlines for both quarterly and annual income taxes to May 17th rather than the traditional mid-April filing deadline set for most years.  While annual revenue totals are comparable as of May 31st, net revenue totals in the current month’s year-over-year comparison are not aligned as a result of the FY 2021 filing deadline shift into May.

The changes within the following tax categories help further explain May’s overall net tax revenue increase:
 
Individual Income Tax:  Individual Income Tax collections increased by $90.5 million, or 5.8 percent, to a total of roughly $1.66 billion compared to last year, when Income Tax collections approached $1.57 billion.

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

• Individual Income Tax refunds issued (net of voided checks) were down $264.8 million, or -66.5 percent
• Individual Withholding payments increased by $175 million, or 17.4 percent, over fiscal year 2021
• Individual Income Tax Return payments were down $370.3 million, or -42.5 percent, from May 2021
• All other Individual categories, including Non-Resident Return payments, were up a combined $21 million

Sales and Use Tax:  Gross Sales and Use Tax collections during the month totaled $1.44 billion, for an increase of $153.8 million, or 11.9 percent, over the previous year.  Net Sales and Use Tax increased by $69.4 million, or 10.5 percent, from May 2021, when net sales tax totaled $657.7 million.  The adjusted Sales Tax distribution to local governments totaled $711.7 million, for an increase of $85.8 million, or 13.7 percent, compared to last year.  Lastly, Sales Tax refunds decreased by $1.4 million, or 31.7 percent, compared to May 2021.

Corporate Income Tax: Corporate Income Tax collections increased by $27.5 million, or 53.8 percent, compared to FY 2021, when Corporate Tax collections totaled $51.2 million for the month.

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

• Corporate Income Tax refunds issued (net of voided checks) were down $10.3 million, or -42.8 percent
• Corporate Income Tax Return payments increased by $17.6 million, or 138.9 percent, over FY '21
• All other Corporate Tax categories, including Corporate Estimated payments, were down $0.4 million  

Motor Fuel Taxes:  Motor Fuel Tax collections for May decreased by $168.9 million, or -99.3 percent, from FY 2021, as a result of the Executive Order issued by Governor Kemp to suspend the Motor Fuel Excise Tax through mid-July.

Motor Vehicle - Tag & Title Fees:  Motor Vehicle Tag & Title Fees increased by nearly $2.7 million, or 8.7 percent, while Title Ad Valorem Tax (TAVT) collections declined by $4.6 million, or -6.2 percent, compared to last year, when TAVT totaled $73.8 million in FY 2021.