Atlanta, Georgia – Georgia’s net tax revenue receipts rose significantly in March to $2.5 billion. This number is a 7 percent increase, or an extra $163.3 million, over the same month last year when collections totaled about $2.34 billion. Examining the fiscal year to date, the state’s net tax income has nearly $24.04 billion, a rise of $543.1 million.
The reinstatement of the state’s vehicle fuel excise tax, which had been suspended for two and a half months in FY 2024 by executive order, accounts for a large part of this year-over-year increase. Adjusted for these motor fuel tax modifications, the modified year-to-date net tax revenue collections as of March 31 reveal a little increase of $82.8 million, or 0.4 percent.
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The individual income tax sector, which gathered $1.13 billion, up 13.2 percent from $998.3 million in March 2024, mostly drove the overall rise in March’s net tax receipts. Included in this surge is a significant increase in income tax withholding payments, which rose by $149.7 million or 10.5 percent. Individual income tax return payments also rose significantly as well, reaching $27.2 million or 28.5 percent. The general rise in this category was strong even after considering an increase in individual income tax refunds, which rose by $67.3 million or 10.6 percent.
On the other hand, the category of sales and use tax saw a small rise. Up 1.3 percent from the prior fiscal year, Gross Sales and Use Tax receipts were $1.44 billion. Despite a slight change in the modified Sales Tax allocation to local governments and a major decline in sales tax refunds by 66.2 percent, net Sales and Use Tax had a more notable rise of 9.7 percent, amounting $61.2 million over previous year’s numbers.
From a corporate perspective, the image was less encouraging. Compared to March 2024, corporate income tax receipts fell $29.7 million or 8.3 percent. Though expected payments rose by $54.9 million or 972.4 percent, this decline was caused by a notable $70.1 million drop in corporate income tax return payments. The total company tax refunds given also dropped by $34.2 million or 38.5 percent.
Reflecting a little decline, the motor fuel taxes category matched the general trend of changing tax income sources across several categories by $2.1 million or 1.2 percent down from the prior year.
At last, there was a varied reaction in the area of motor vehicle-related collections. Collections of motor vehicle tag and title fees rose by a remarkable $7.8 million or 25.5 percent. TAVT, on the other hand, brought in $0.3 million less or 0.4 percent.
This diverse tax category performance emphasizes the dynamic character of state revenue creation shaped by economic policies, market conditions, and legislative changes. These numbers will be important measure of Georgia’s economic health and budgetary policy as it goes on through the fiscal year.
