ATLANTA – Georgia tax collections fell by 2.8% last month, resuming a downward pattern that has taken hold for much of this year, the state Department of Revenue reported Friday.
After posting a one-month gain in August compared to the same month last year, state revenues declined by $91.2 million in September compared to September 2023.
However, tax receipts were up slightly for the first three months of fiscal 2025, increasing by 0.4% compared to the same period last year.
Individual income taxes actually rose by 3.6% last month, primarily resulting from a huge 27.9% decrease in refunds issued by the revenue agency. That more than offset a slight 0.3% decrease in tax payments.
Net sales tax collections fell by 6.4% in September. Corporate income tax revenues also were down 13.1%, as refunds rose by $29.7 million compared to the same month a year ago and payments decreased by $47.2 million, or 10.9%.
Despite the sluggish revenue numbers, the General Assembly adopted a $36.1 billion budget for fiscal 2025, which began in July, with raises for teachers and state and University System of Georgia employees as well as record spending on education and mental health. The state could afford to be generous because of a healthy surplus built up during the last three years.