ATLANTA – Georgia tax collections rose in August for the second month in a row after three straight months of declines at the height of the coronavirus-driven business lockdown.
The state took in nearly $1.89 billion last month, up $134.5 million – or 7.7% – over August of last year. August’s positive numbers followed a 17% increase in tax revenues in July.
Last month’s results were strong all around. Individual income taxes rose by 10.3% over August of 2019, while net sales tax collections were up 10.8%.
Corporate income tax revenues soared by 115.9%, driven by a 112.2% rise in tax return payments and a 29.1% decrease in refunds issued by the Georgia Department of Revenue. Corporate income taxes typically are more volatile than individual income and sales taxes.
With Georgians still driving and traveling less because of the pandemic, motor fuel and hotel/motel tax receipts declined in August compared to the same month last year. Motor fuel taxes were down 2.5%, while hotel/motel tax payments dropped by 30.4%.
The $25.9 billion state budget that took effect in July cut spending by $2.2 billion to help offset the economic impact of the coronavirus pandemic.
The last two monthly revenue reports are seen as a sign Georgia’s economy is bouncing back from the business shutdown prompted by the COVID-19 outbreak and that further budget reductions might not be required.
Gov. Brian Kemp said last month he would not ask state agencies for additional spending cuts next year.