GA tax revenues increase for first time in 3 months
Capitol Beat News Service
ATLANTA — Georgia tax collections rebounded last month after a dismal second quarter, boosted by a delay in the normal income tax filing deadline from midApril until mid-July.
Tax revenues in July increased by $311.8 million over July of last year – or 17% — the state Department of Revenue reported Friday.
The agency also released figures for all of fiscal 2020, which ended June 30. Including the extra two weeks in July folded into the report because of the delayed filing deadline, the state took in $23.7 billion during a year scarred by the coronavirus pandemic, down just 0.4%, a far better showing than expected.
The state moved the filing deadline back three months to follow the example of the federal government, which gave taxpayers more time because of COVID-19.
Individual income tax revenues last month were up 20.2% over July of last year, reflecting a large jump in payments combined with a big decrease in refunds.
With Georgia’s economy opening back up after being virtually shut down during the early months of the pandemic, net sales tax collections increased 9.6%.
July’s rosy numbers followed three consecutive months of falling tax revenues brought on by the economic impact of COVID-19 on Georgia businesses and their employees.
The General Assembly responded last month to the dismal economic picture of the second quarter with $2.2 billion in spending cuts in a $25.9 billion fiscal 2021 budget that took effect July 1.
While Gov. Brian Kemp indicated this week he will call lawmakers back to the Gold Dome for a special session later this year, the more optimistic revenue picture now emerging might let the governor and legislature avoid additional reductions.