Georgia's net tax revenues saw a modest increase in August, as reported by Governor Brian Kemp's office. Revenues totaled $2.41 billion, a 3.2% uptick from the previous year's $2.34 billion. The governor's office states that this boost is reflective of the state's economic status, indicating a continuum of growth. The year-to-date figures also went up marginally to $4.91 billion, representing a slight rise of 0.1% from the last fiscal year that ended with $4.90 billion in net tax collections after two months.
Breaking down the revenue sources, the governor's announcement detailed that individual income tax collections contributed nearly $1.16 billion, climbing by 1.8%. According to the report, a decrease in individual income tax refunds by $7 million, or -9.7%, amongst other factors, balances the scales favoring the state's coffers. Withholding payments showed a modest rise of 0.8%, and individual income tax return payments went up 14.1% compared to FY 2025.
Sales and Use Tax also performed positively, with gross collections hitting $1.66 billion, a 5.3% hike from the previous fiscal year. Georgia saw an upturn in this area, with net sales and use tax revenue increasing by 8.2% and the adjusted distribution to local governments climbing by 2.2%, amounting to $830 million, despite an increase of $2.9 million in sales tax refunds.
Conversely, corporate income tax collections didn't fare as well, as noted in the report, ringing in at $39.8 million which was a drop of $4.5 million or a decline from last year's net of $44.3 million. Components inside the corporate income tax bracket, including estimated payments and other corporate tax payments, which went down a combined $6.1 million, saw a falloff contributing to the overall decrease.
On the fuel front, the state experienced a bump in motor fuel tax collections increasing by 3.2% to a total of $199.5 million. However, motor vehicle tag and title fees didn't maintain the same momentum, reporting a 13.5% decrease, and Title ad Valorem Tax (TAVT) collections also dipped by 3.2% from the preceding year's sum of $74.5 million.
