In May 2024, Georgia’s tax revenues dropped by 1.1% from the previous year, contributing to an overall 1.2% decrease for the fiscal year. This doesn’t fully account for the impact of exemptions on gasoline and motor fuel sales taxes. Despite these challenges, Georgia has amassed a $16 billion budget surplus over three years to help manage financial pressures.
Georgia‘s Tax Collections declined 1.1% in May – Corporate Income Taxes plunged 35.1%
According to the article Rough Draft, Georgia’s tax collections faced difficulties last month, dropping by 1.1% compared to May of the previous year, as reported by the state Department of Revenue. This decline continues a trend with only one month left in the fiscal year, showing Georgia’s tax revenues down by 1.2% compared to the first 11 months of fiscal 2023. However, these numbers don’t fully account for the impact of the state’s decision to exempt sales taxes on gasoline and motor fuels during the first half of the previous fiscal year, leading to a net decrease in Georgia’s tax revenues by 4.3% over the 11 months ending May 31.
In May, individual income tax receipts notably dropped by 3.3% year-over-year, mainly due to a significant 32.9% decrease in individual Georgia’s tax payments. On the other hand, net sales tax collections showed a slight increase of 0.4% compared to May of last year. Meanwhile, corporate income taxes saw a steep 35.1% decline in May, driven by a 23.1% drop in Georgia’s tax payments and a substantial 497.5% increase in refunds issued by the revenue agency.
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Georgia’s Tax Collections Plummet 1.1% in May: 4.3% for the Year – Amid Economic Uncertainty! (PHOTO: New Georgia Encyclopedia)
Georgia Governor Warns of Financial Challenges Despite $16B Budget Surplus
Furthermore, as Georgia approaches the conclusion of fiscal year 2024 on June 30, Governor Brian Kemp has warned about tighter financial conditions ahead. Nonetheless, the state’s accumulation of a $16 billion budget surplus over the past three years is expected to provide a significant cushion against major spending cuts. This surplus aims to stabilize Georgia’s tax financial outlook amid ongoing economic uncertainties and fluctuating tax revenues.
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