Posted: Tuesday, April 8th 2014 at 4:09pm
Governor Deal: March revenues up 12.3 percent
ATLANTA - Governor Nathan Deal announced today that Georgia’s net tax collections for the month of March totaled $1.32 billion for an increase of nearly $144.5 million, or 12.3 percent, compared to the month-ended March 2013. Year-to-date, net tax revenue collections totaled $13.05 billion for an increase of nearly $705 million, or 5.7 percent, compared to the same point last year.
Changes within the following major tax categories explain the net tax revenue increase in March:
Individual Income Tax: Individual Income Tax collections in March totaled $477.5 million, up from roughly $422.75 million in March 2013, for an increase of $54.75 million or 13 percent.
The following notable components within Individual Income Tax combine to make up the net increase:
• Individual Withholding payments for March were up $54 million or 6.3 percent
• Income Tax refunds issued, which totaled nearly $527 million, were up $3 million or 0.6 percent
• All other Individual Tax categories, including Estimated and Non-Resident payments, were up $3.75 million
Sales and Use Tax: Gross Sales Tax collections declined $22 million, or -2.7 percent, on account of legislation that replaced the traditional automobile Sales Tax with a one-time Title Tax, while net Sales & Use Tax collections for March decreased $10.5 million, or -2.4 percent, compared to last year. Lastly, refunds were down $12.75 million while the adjusted distribution to local governments increased roughly $1.25 million compared to March 2013.
Corporate Income Tax: Corporate Income Tax collections in March increased $39 million, or 22.3 percent, compared to FY 2013 when Corporate Tax revenues totaled just under $175 million.
The following notable components within Corporate Income Tax make up the net increase:
• Corporate Tax refunds issued (net of voided checks) were up $5.75 million or 47.5 percent
• Corporate Estimated Tax payments were up $13 million or 17.4 percent
• All other Corporate Tax categories, including S-Corp and Return payments, increased $31.75 million
Motor Vehicle Tag & Title Fees: Fee collections for March totaled slightly less than $91.5 million, which was $60.75 million higher than the previous year before the implementation of HB 266 (see below).
*Tax Reform Impacts*: HB 386 and HB 266 had significant impacts on Georgia’s tax structure that influenced current month and year-to-date revenue collections across multiple tax collection categories. The increase in Motor Vehicle Tag & Title Fees is the result of the March 1, 2013, implementation of a new Title ad Valorem Tax (TAVT). Sales Tax collections have been impacted by the elimination of the auto sales tax, reduction in the sales tax on energy used in manufacturing, implementation of the Georgia Agricultural Tax Exemption program, and reinstatement of the sales tax holidays. Individual Income Tax has been impacted by the marriage penalty reduction effective Jan. 1, 2013.
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