Adjusted September Revenues Down 3.2%

The State of Georgia’s net tax collections during the month of September totaled nearly $3.3 billion, for an increase of $199.1 million or 6.4 percent compared to September 2022, when net tax collections totaled almost $3.1 billion for the month. $199.8 million of September’s 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 distribution adjustments made in the current fiscal year, all other September net tax collections decreased by 3.2 percent, or $97.8 million compared to September 2022.

On a year-to-date basis, total revenues were up 6.1 percent or $463 million from the same three months last year, driven mostly by collection of the state motor fuel tax that was suspended throughout the same time period in 2022. Net of the motor fuels tax changes and local sales tax distribution adjustments, revenues for the three months ended September 30 were down 1.3 percent from this time a year ago.

The changes within the following tax categories account for September’s overall net tax revenue decrease:

Individual Income Tax: Individual Income Tax collections during September totaled $1.39 billion, down from a total of $1.55 billion in fiscal year 2023, for a decrease of $163.4 million or 10.5 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 $52.5 million or 70.4 percent.
• Income Tax Withholding payments for September increased by $51.7 million or 4.5 percent over FY 2023.
• Individual Income Tax Estimated payments decreased by $94.5 million or 36.9 percent from FY 2023.
• Individual Income Tax Return payments decreased by $24.3 million or 25.4 percent compared to FY 2023.
• All other Individual Tax categories, including Estimated Tax payments, were down a combined $43.6 million.

Sales and Use Tax: Gross Sales and Use Tax collections for September totaled $1.51 billion, which was an increase of $31.3 million, or 2.1 percent, over FY 2023. Net Sales and Use Tax increased by $70.9 million or 9.5 percent compared to September 2022, when net Sales Tax revenue totaled $749.2 million. The adjusted Sales Tax distribution to local governments totaled $682.3 million, for a decrease of $42.5 million or 5.9 percent from last year, while Sales Tax refunds increased by $2.8 million compared to FY 2023. The September local distributions amount includes an adjustment of $97.1 million for distributions paid out to local governments in August related to the Sales Tax attributable to FY 2023.

Corporate Income Tax: Corporate Income Tax collections for the month increased by $83.6 million or 13.8 percent compared to last year, when net Corporate Tax revenues totaled $603.9 million in September.

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

• Corporate Income Tax refunds issued (net of voids) were up $17.1 million compared to September 2022.
• Corporate Income Tax Return payments increased by $42.5 million or 56.5 percent from FY 2023.
• All other Corporate Tax payments, including Corporate Estimated payments, were up a combined $58.2 million.

Motor Fuel Taxes: Motor Fuel Tax collections for September increased by $199.8 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. Via executive order, the governor again suspended collection of the state motor fuel tax beginning on September 13 of this year and renewed that order this month.

Motor Vehicle - Tag & Title Fees: Motor Vehicle Tag & Title Fee collections for September fell by nearly $0.1 million or 0.3 percent, while Title Ad Valorem Tax (TAVT) collections rose by $6.1 million or 8.1 percent from FY 2023.