ATLANTA – Georgia tax collections continued on a strong pace last month, the state Department of Revenue reported Tuesday.
State tax revenues rose by $175.6 million last month compared to January of last year, a 7.5% increase.
Another positive showing for monthly tax receipts comes as good news to Georgia lawmakers beginning to go to work on Gov. Brian Kemp’s $27.2 billion fiscal 2022 state budget plan.
With tax revenues coming in higher than expected during the first half of the fiscal year through December, the General Assembly won’t be faced with a repeat of the $2.2 billion in spending cuts the legislature was forced to impose last year.
Individual income taxes increased by 6.3% in January, thanks largely to a 40.8% decline in tax refunds issued by the revenue agency. Net sales taxes also rose by 10.2% during the month.
Corporate income tax collections soared by 51.2% compared to January 2020, as estimated payments rose by 45.1% while refunds plummeted by 60.1%.
While state tax collection trends are looking encouraging at the present, the chairman of the House Appropriations Committee warned late last month the good times aren’t likely to last.
Rep. Terry England, R-Auburn, told his House colleagues state revenues likely will get hit at tax-filing time as the Department of Revenue issues refunds to a large number of unemployed Georgians whose benefits were taxed.