NE Atlanta News

Governor Brian Kemp's office recently announced a 5% decrease in Georgia's tax revenues for December, which equates to nearly $160 million. Local officials have interpreted this decline as an indication of the need for strategic fiscal planning in response to fluctuations in income and sales taxes.

According to a press release from Kemp's office, the net tax revenue decline in December is primarily due to a $52.2 million decrease in individual income tax, representing a 3.6% drop from fiscal year 2023. The total collection for individual income tax was approximately $1.39 billion. The press release specifically highlighted two significant increases: a 114% rise in refunds issued, amounting to $66.6 million, and a $61.3 million (4.6%) increase in income tax withholding payments compared to December FY 2023. However, there was a notable $23.1 million (-37.9%) decrease in individual income tax estimated payments from the previous year, alongside an aggregate $23.8 million drop across all other individual tax categories, including tax return payments.

The same press release also revealed that sales and use tax collections reached $1.52 billion in December, marking a 2.8% increase over FY 2023, with a net increase of $10.6 million compared to the previous year. Adjusted sales tax distribution to local governments rose to $745.4 million, while sales tax refunds increased by $14.5 million. On the other hand, corporate income tax collections saw a decrease of $136.7 million (-16.1%) compared to the prior year; this was driven by increases in refunds issued and declines in estimated and return payments.

As reported by Capitol Beat News Service, Georgia has accumulated a budget surplus of $16 billion over the last three years. Kemp is set to present his budget proposals to the Georgia General Assembly later this week.