ATLANTA – Georgia tax collections rose last month compared to January of last year, the state Department of Revenue reported Monday.
But that 2.1% increase only occurred because the state sales tax on gasoline was in effect last month but was not being collected during the same month a year ago.
Both individual and corporate income taxes fell in January. Individual income taxes declined slightly – by 0.3% – while corporate income tax revenue plummeted by 43.3%.
Net sales taxes rose slightly last month – by 0.2% – compared to January of last year.
For the first seven months of the current fiscal year, state tax receipts increased by 1.7% over the same period during fiscal 2023. However, after subtracting taxes on gasoline and other fuels from the mix, revenues from last July through last month were down 2.7%.
While tax collections have been sluggish for months, Gov. Brian Kemp and legislative leaders haven’t been overly concerned because Georgia has built up a $16 billion budget surplus during the last three years. That’s allowed the governor to propose major spending increases in both the fiscal 2024 midyear budget and the fiscal 2025 spending plan.