Georgia's fiscal outlook showed improvement last month, with the state's Department of Revenue reporting a 9.6% increase in December tax revenues, totaling nearly $3.34 billion. This surpassed last year's December revenue of $3.05 billion, according to the Office of the Governor's release yesterday.
However, year-to-date adjusted revenue still reflects a slight decrease, down 1% compared to the previous year. This decline is partly attributed to the suspension of the motor fuel excise tax, a policy enacted by Governor Kemp's administration for two and a half months during the previous fiscal year. Without this tax change, revenue for the six-month period ending in December fell to $16.36 billion.
Individual income tax collections contributed significantly to the December revenue boost, reaching $1.49 billion, a notable increase from the previous year. Taxpayers saw fewer deductions from their paychecks, with individual income tax refunds dropping by 42.7%, while withholding and return payments increased by 2.1% and 75.2%, respectively.
On the other hand, corporate income tax collections declined by 4.1%, with corporate tax estimated payments decreasing by 7.3%. Corporate tax refunds also decreased by 25.1%. The motor fuels sector saw a $182 million increase in tax revenue compared to last December, after the temporary suspension was lifted.
Sales and use taxes increased slightly by 2.6%, while local government allocations from this revenue saw a stronger 5.3% growth. Motor vehicle fees also grew by 13.8%, although title ad valorem taxes declined modestly.
