October Adjusted Tax Revenues Down 5.7%

Atlanta, GA – The State of Georgia’s net tax collections during the month of October totaled $2.62 billion, for a decrease of $84.4 million or 3.1 percent compared to October 2022, when net tax collections totaled nearly $2.71 billion for the month. $70.5 million of October’s tax revenue changes were the result of tax collected on motor fuel prior to the suspension of the state gas tax in September. Excluding Motor Fuel Tax revenues, all other October net tax collections decreased by 5.7 percent or $154.9 million compared to October 2022.

On a fiscal year-to-date basis, total revenue collections were up 4.2 percent or $428.6 million from the same four-month period last year, driven mostly by the collection of the state motor fuel tax that was suspended throughout the same time period in 2022. Net of motor fuel tax changes, revenues for the four months ended October 31 were down 2 percent from this time a year ago.

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

Individual Income Tax: Individual Income Tax collections during October totaled nearly $1.38 billion, down from a total of $1.56 billion in fiscal year 2023, for a decrease of $185.2 million or 11.8 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 $62.9 million or 30.2 percent
• Income Tax Withholding payments for October increased by $54.7 million or 4.4 percent over FY 2023
• Individual Income Tax Return payments decreased by $137.8 million or 32.6 percent compared to FY 2023
• Individual Income Tax Estimated payments decreased by $23 million or 45.3 percent from FY 2023
• All other Individual Tax categories, including Estimated Tax payments, were down a combined $16.2 million

Sales and Use Tax: Gross Sales and Use Tax collections for October totaled roughly $1.51 billion, which was an increase of $17.1 million or 1.1 percent over FY 2023. Net Sales and Use Tax decreased by $12.2 million or 1.6 percent compared to October 2022, when net Sales Tax revenue totaled $763.6 million. The adjusted Sales Tax distribution to local governments totaled $752.3 million for an increase of $29.9 million or 4.1 percent from last year, while Sales Tax refunds decreased by $0.5 million compared to FY 2023.

Corporate Income Tax: Corporate Income Tax collections for the month increased by $25.8 million or 24.3 percent, compared to last year, when net Corporate Tax revenues totaled $106.5 million for October.

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

• Corporate Income Tax refunds issued (net of voids) were up $6.8 million compared to October 2022
• Corporate Income Tax Return payments increased by $9.1 million or 18.7 percent from FY 2023
• All other Corporate Tax payments, including Corporate Estimated payments, were up a combined $23.5 million

Motor Fuel Taxes: Motor Fuel Tax collections for October increased by $70.5 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. Motor Fuel tax is reported by distributors in the month following its collection, and as such, this revenue was collected in September prior to suspension of the tax.

Motor Vehicle - Tag & Title Fees: Motor Vehicle Tag & Title Fee collections for the month fell by $0.8 million or 2.4 percent, while Title ad Valorem Tax (TAVT) collections increased by $3.1 million or 4.4 percent over FY 2023.