Gov. Nathan Deal announced today that Georgia’s net tax collections for the month of May totaled $1.39 billion for an increase of nearly $42.25 million, or 3.1 percent, compared to the month-ended May 2013. Year-to-date, net tax revenue collections totaled $16.1 billion for an increase of nearly $697 million, or 4.5 percent, compared to the same point last year when net tax revenues totaled $15.4 billion through the end of May 2013.
Changes within the following major tax categories explain the net tax revenue increase in May:
Individual Income Tax: Individual Income Tax collections in May totaled just over $675 million, up from roughly $654.5 million in April 2013, for an increase of $20.5 million or 3.1 percent.
The following notable components within Individual Income Tax combine to make up the net increase:
• Individual Income Tax Return payments in May were up $5.5 million or 17 percent
• Income Tax refunds issued, which totaled $126.25 million, were down $34.25 million or -21.4 percent
• Individual Income Tax Withholding for the month was down $11.5 million or -1.5 percent
• All other Individual Tax categories including Estimated payments and Assessments were down $7.75 million
Sales and Use Tax: Gross Sales Tax collections increased nearly $36 million, or 4.5 percent, compared to last May, the second month in which the Title ad Valorem Tax displaced Automobile Sales Tax into Motor Vehicle Fees (see *Tax Reform note below). Net Sales Tax collections increased almost $10.5 million, or 2.5 percent, compared to last year despite large negative year-over-year changes in both the adjusted Local Distribution, which totaled roughly $389.5 million, and net Refunds issued, which increased $12.75 million over the previous fiscal year.
Corporate Income Tax: Corporate Income Tax collections in May decreased approximately $19.25 million, or -72.2 percent, compared to FY 2013 when net Corporate Tax revenues totaled $26.75 million.
The following notable components within Corporate Income Tax make up the net decrease:
• Corporate Tax refunds issued (net of voided checks) were up $16.25 million or 1,275 percent
• Corporate Estimated payments were down $5 million or -28.8 percent
• All other Corporate Tax categories, including S-Corp and Return payments, increased $2 million
Motor Vehicle Tag & Title Fees: Fee collections totaled roughly $107.25 million, which was an increase of $21.25 million compared to last May, when TAVT collections totaled just $55 million versus $81 million in May of this year.
*Tax Reform Impacts*: HB 386 and HB 266 had significant impacts on Georgia’s tax structure that influenced current month and year-to-date revenue collections across multiple tax collection categories. The increase in Motor Vehicle Tag & Title Fees is the result of the March 1, 2013 implementation of a new Title ad Valorem Tax (TAVT). Sales Tax collections have been impacted by the elimination of the auto sales tax, reduction in the sales tax on energy used in manufacturing, implementation of the Georgia Agricultural Tax Exemption program, and reinstatement of the sales tax holiday. Individual Income Tax has been impacted by the marriage penalty reduction effective Jan. 1, 2013.