Atlanta, Georgia – Many Georgians have taken notice of an economic report including State October tax receipts, which show a clear drop. According to Georgia Department of Revenue reports, net tax receipts for October came at $2.53 billion, a 3.4% drop—or $89.7 million less than in the same period last fiscal year. This decline follows a larger trend of small income declines across the fiscal year; the total drop of 0.6% amounts to $61.1 million less than the year before.
The state’s suspension of motor fuel taxes—a move that offered temporary relief from high gas prices but has affected year-on-year comparisons—shaped the financial scene of October 2023 significantly. Without these motor fuel tax changes, revenues for October fell by 7.7% compared to the year before, while the year-to- date numbers show a 1.9% drop.
The postponement of income tax filing and payment deadlines brought about by the hurricane added to the complexity of the fiscal scenario. Originally scheduled for October 2023 through April 2025, the deadlines have been moved to May 1, 2025. Though payroll withholding collections remain unaffected, this prolongation is expected to have hampered the collecting of individual and corporate income taxes.
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Individual Income Tax:
Down 8.7% from last year’s $1.38 billion, October’s personal income tax revenues came to nearly $1.26 billion. Several elements help to explain this decline:
- A $27.2 million (10%) drop in net individual income tax refunds,
- A $49.3 million (3.8%) reduction in income tax withholding payments,
- A significant $104.3 million (36.5%) fall in individual income tax return payments,
- A slight increase in other individual tax categories, like estimated payments, totaling $6.8 million.
Sales and use tax:
Although gross sales and use tax receipts marginally increased by $2.3 million to $1.51 billion, net sales and use tax dropped 1% and amounted to $7.5 million less than year before. Adjustments included a $14.1 million increase in sales tax refunds and a $4.3 million (0.6%) cut in the allocation of sales tax to local governments.
Corporate income tax:
Corporate income tax collections saw a dramatic fall of 47.4%, with collections dropping by $62.8 million from the prior year. The details reveal:
- A $37.9 million increase in corporate income tax refunds,
- A $23.5 million (40.8%) decrease in corporate income tax return payments,
- A $1.4 million decrease in other corporate tax payments.
Motor fuel taxes:
On the other hand, motor fuel tax collections jumped by 146.1%, a rise of $105.6 million, mostly resulting from the tax suspension of the previous year, therefore drastically lowering the baseline for comparison.
Motor vehicle – tag & title fees:
Comprising $32.1 million, these collections stayed consistent and showed no appreciable variation from the year before. But receipts of Title Ad Valorem Tax (TAVT) dropped $6.2 million, or 8.5%.
Georgia’s tax income shows the careful balance between governmental choices and financial reality. Specifically for individual and corporate income taxes, the prolonged tax deadlines are probably going to continue influencing short-term revenue collecting. The next months will be very important for state officials to fully grasp the effects of these policy decisions and outside economic events on Georgia’s financial situation as they negotiate these budgetary challenges.
