Atlanta, GA – The State of Georgia’s net tax collections for the first month of FY 2024 totaled nearly $2.50 billion, for an increase of $289.3 million, or 13.1 percent, over July 2022 when net tax collections totaled almost $2.21 billion. $179.5 million of this increase, or 62 percent, was the result of the reinstatement of the Motor Fuel Excise Tax. Governor Kemp suspended the tax from March 18, 2022, through January 11, 2023, to help hardworking Georgians fight through 40-year high inflation. Excluding Motor Fuel Tax revenues, all other July 2023 net tax collections increased 5.0 percent, or $110 million over July 2022.
The changes within the following tax categories account for July’s overall net tax revenue increase:
Motor Fuel Taxes: Motor Fuel Tax collections for July account for the bulk of the revenue increase, rising by $179.5 million over July 2022, when Governor Kemp’s Executive Order to suspend the Motor Fuel Excise Tax was in effect.
Individual Income Tax: Individual Income Tax collections during the month totaled $1.26 billion, up from a total of roughly $1.17 billion in July 2022, for an increase of $91 million or 7.8 percent.
The following notable components within Individual Income Tax combine for the net increase:
• Individual Income Tax refunds issued (net of voided checks) increased by $23.6 million or 28.9 percent
• Income Tax Withholding payments for July increased by $134.5 million, or 11.8 percent, over FY 2023
• Individual Income Tax Return payments increased by $3.3 million, or 7.8 percent, compared to July 2022
• All other Individual Tax categories, including Estimated Tax payments, were down a combined $23.3 million
Sales and Use Tax: Gross Sales and Use Tax collections in July approached $1.53 billion, for an increase of $18.5 million, or 1.2 percent, over FY 2023. Net Sales and Use Tax increased nearly $16 million, or 2.1 percent, compared to July 2022, when net Sales Tax revenue totaled $756.2 million. The adjusted Sales Tax distribution to local governments totaled $748 million, for a slight decrease of $0.4 million from last year, while Sales Tax refunds increased by $2.9 million, or 78.3 percent, compared to FY 2023.
Corporate Income Tax: Corporate Income Tax collections for the month totaled $96.5 million, which was an increase of nearly $1.5 million, or 1.6 percent, up from FY 2023 when net Corporate Tax revenues totaled $95 million for July.
The following notable components within Corporate Income Tax make up the net increase:
• Corporate Income Tax refunds issued (net of voids) were up $15.4 million, or 270.1 percent, from FY 2023
• Corporate Income Tax Return payments increased by $7 million, or 22.8 percent, over July 2022 (FY ’23)
• All other Corporate Tax payments, including Estimated payments, were up a combined $9.9 million
Motor Vehicle - Tag & Title Fees: Motor Vehicle Tag & Title Fee collections for the month decreased by $0.6 million, or -2 percent, while Title ad Valorem Tax (TAVT) collections increased by $3.2 million, or 4.6 percent, compared to the previous fiscal year.