Atlanta, Georgia – According to the most recent financial data, Georgia’s net tax receipts slightly rose in January; collections inching up by around $2 million or 0.1% compared to the same month last year. Just slightly up from just under $3.05 billion in January 2024, the State collected in January over $3.05 billion. The fiscal year-to- date numbers show a somewhat different picture despite the tiny monthly increase: a drop of 0.9%, with adjusted net tax collections of about $19.41 billion.
The main cause of this year-to-date decline is the temporary suspension of the motor fuel excise tax of the state. Under an Executive Order, this tax stopped being collected for two and a half months in the fiscal year 2024, thereby significantly impacting the overall tax collecting. Considering this, modified year-to-date tax receipts actually dropped by $173.1 million.
Separating the tax categories, individual income tax revenues for January fell by 4.3%, or almost $1.59 billion, from almost $1.67 billion in the prior year. Several elements affected this drop: a significant 61.5% drop in refunds issued, a 6.5% drop in income tax withholding payments, and a 16.9% drop in predicted individual payments.
On the other hand, sales and use tax revealed favorable dynamics. With gross sales and use tax collections rising by 6.2%, January brought around $1.85 billion. A marked increase in the adjusted distribution to local governments and a decline in sales tax refunds helped net sales and use tax also grow by 4.5% to roughly $870.9 million.
Though projected payments and other company tax payments fell, corporate income tax collections saw an 11.6% rise, bringing in an extra $16.7 million above last year. Rising by 7.7%, the automobile fuel taxes also add an additional $13.9 million to the state’s coffers over past January.
Not every category, meanwhile, performed as expected. Title ad Valorem Tax (TAVT) revenues climbed by 9.5%; motor vehicle tag and title fee collections dropped 10.1%.
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Important markers of the state’s economic situation, these swings in tax income guide budget planning and change in fiscal policy. Although the general rate of growth is still slow, the rise in particular areas including sales and use as well as corporate income tax point to areas of strong economic activity. The state will probably keep careful eye on these developments going forward to handle any budgetary issues and capitalize on opportunities for economic development in its current environment.
