Adjusted August Tax Revenues Down 4.8%

The State of Georgia’s tax collections during the month of August totaled $2.28 billion for a decrease of $25.4 million, or -1.1 percent, compared to August 2022 when net tax collections totaled nearly $2.31 billion. $181.6 million of August tax revenue changes were the result of the reinstatement of the Motor Fuel Excise Tax. Excluding Motor Fuel Tax revenues and prior year related local sales tax distributions made in August, all other net tax collections decreased by -4.8 percent, or $110 million, compared to August 2022.

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 $1.25 billion, down from a total of $1.32 billion in August 2022 for a decrease of $68.2 million or -5.2 percent.

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

• Individual Income Tax refunds issued (net of voided checks) increased by $7.2 million or 9 percent
• Income Tax Withholding payments in August decreased by $17.4 million, or -1.4 percent, from FY 2023
• Individual Income Tax Return payments decreased by $5.8 million, or -13.1 percent, compared to FY 2023
• All other Individual Tax categories, including Estimated Tax payments, were down a combined $37.8 million

Sales and Use Tax: Gross Sales and Use Tax collections for August totaled nearly $1.52 billion, which was an increase of $43.8 million, or 3 percent, over FY 2023. Net Sales and Use Tax, however, decreased by $74.1 million, or -10.1 percent, compared to August 2022 when net Sales Tax revenue totaled $736.4 million. The adjusted Sales Tax distribution to local governments totaled $815.8 million, for an increase of $79.6 million or 10.8 percent over the previous fiscal year, while Sales Tax refunds increased by $38.2 million compared to FY 2023. This includes $97.1 million in additional Sales Tax distribution to local governments attributable to FY 2023 activity. Excluding prior year distributions to local governments, Net Sales and Use Taxes increased by $23.1 million, or 3.1 percent, compared to August 2022.

Corporate Income Tax: Corporate Income Tax collections for August declined by $64.1 million, or -103 percent, compared to last year when net Corporate Tax revenues totaled $62.3 million for the month.

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

• Corporate Income Tax refunds issued (net of voids) were up $53.3 million compared to August 2022
• Corporate Income Tax Estimated payments decreased by $16.6 million, or -41.9 percent, from FY 2023
• All other Corporate Tax payments, including Corporate Return payments, were up a combined $5.8 million

Motor Fuel Taxes: Motor Fuel Tax collections for August increased by $181.6 million, compared to FY 2023 when Governor Kemp’s Executive Order to suspend the Motor Fuel Excise Tax was in effect during the entire month. Governor Kemp's most recent suspension of the state motor fuel tax took effect on September 13 and will be reflected in next month's revenue report.

Motor Vehicle - Tag & Title Fees: Motor Vehicle Tag & Title Fee collections for August increased by $6.2 million, or 17.1 percent, while Title ad Valorem Tax (TAVT) collections declined by $5.1 million, or -7.6 percent, compared to the previous fiscal year.