Georgia tax collections are way up, but there’s a catch
Georgia’s net tax collections for February totaled over $1.93 billion — up $581 million compared to February 2020.
But much of the increase stemmed from federal guidance to delay processing income tax refunds until Feb. 12.
“This will cause the next month or two to take a hit on tax refunds,” said state Sen.
Chuck Hufstetler, who chairs that chamber’s Finance Committee.
Still, the Rome Republican said the news is good overall.
Sales tax revenue continues to be strong, rising 13.1% over February 2020. Collections for the fiscal year period between July 1, 2020, and the end of February brought in $76.4 million more than in the same period the previous fiscal year.
Hufstetler was among the Capitol’s heavy hitters that pushed through a bill last year requiring online retailers like Amazon to collect sales tax on Georgia sales. Gov. Brian Kemp signed it into law on April 1, 2020.
Statewide, sales tax revenue for local governments increased by $51.7 million in February, up 10.6% from February 2020, according to a release from Kemp’s office.
Collections were down in several categories, including corporate income tax. Refunds for the month were up $8.9 million while payments declined by $5.7 million. All other corporate taxes — including estimated payments — were down by $2.6 million from last February.
Motor fuel tax collections fell slightly, by about $800,000, compared to fiscal year 2020. And while tag and title fees increased by $2.6 million in February, title ad valorem tax revenue fell by $3.7 million.
Overall, though, Georgia’s total tax collections are up 9.5% year to date for the fiscal year that began July 1, 2020.
“The 50 states’ average as a whole is down, on state revenue compared to the previous year, so Georgia is strongly outperforming the national average,” Hufstetler said.