Georgia tax revenues up thanks to motor fuel tax resumption, state says

WSBTV.com News Staff
·3 min read

Just under seven months since Georgia resumed collection motor fuel taxes, the state reported the biggest revenue increase for July was from gasoline sales.

July revenues had a 13.1% net increase, according to state officials, while the non-fuel tax revenues were up just 5%.

According to the state, motor fuel tax collection in July was the bulk of the increase.

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From collections at the gas pump, Georgia earned $179.5 million more than in July 2022.

It’s a change from a move by Gov. Brian Kemp to temporarily suspend the state’s gas tax amid inflationary pressures on Georgia families, which stopped collections from March 18, 2022 to Jan. 11, 2023.

Kemp’s office said that was a decision made to help Georgians fight “40-year high inflation.”

The increase in revenue now that the gas tax is back was 62%, according to the state.

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According to the governor’s office, July’s net tax revenue increased across the following sections.

  • Motor Fuel Tax collections for July account for the bulk of the revenue increase, rising by $179.5 million over July 2022, when Governor Kemp’s Executive Order to suspend the Motor Fuel Excise Tax was in effect.

  • Individual Income Tax collections during the month totaled $1.26 billion, up from a total of roughly $1.17 billion in July 2022, for an increase of $91 million or 7.8%.

The governor’s office broke down other increases into smaller sub-groups.

  • When it comes to Individual Income Tax, net increases were owed to:

  • Individual Income Tax refunds issued (net of voided checks) increased by $23.6 million or 28.9%.

  • Income Tax Withholding payments for July increased by $134.5 million, or 11.8%, over FY 2023.

  • Individual Income Tax Return payments increased by $3.3 million, or 7.8%, compared to July 2022.

Officials said all other Individual Tax categories, including Estimated Tax payments, were down a combined $23.3 million in July.

  • Gross Sales and Use Tax collections in July approached $1.53 billion, for an increase of $18.5 million, or 1.2%, over FY 2023.

  • Net Sales and Use Tax increased nearly $16 million, or 2.1%, compared to July 2022, when net Sales Tax revenue totaled $756.2 million.

  • The adjusted Sales Tax distribution to local governments totaled $748 million, for a slight decrease of $0.4 million from last year, while Sales Tax refunds increased by $2.9 million, or 78.3%, compared to FY 2023.

  • Corporate Income Tax collections for the month totaled $96.5 million, which was an increase of nearly $1.5 million, or 1.6%, up from FY 2023 when net Corporate Tax revenues totaled $95 million for July.

The biggest increase shown was actually a decrease when it comes to state revenue. Corporate income tax refunds rose significantly, while corporate tax returns did as well.

Collectively, corporate income tax refunds and returns totaled more than $22 million to businesses, while collections from corporations only rose $9.9 million.

  • Corporate Income Tax refunds issued (net of voids) were up $15.4 million, or 270.1%, from FY 2023.

  • Corporate Income Tax Return payments increased by $7 million, or 22.8 percent, over July 2022 (FY ‘23).

  • All other Corporate Tax payments, including Estimated payments, were up a combined $9.9 million.

Georgia officials said the state’s collections for vehicle tags and titles fell about 2%, while ad valorem tax collections rose by 4.6%.

  • Motor Vehicle Tag & Title Fee collections for the month decreased by $0.6 million.

  • Title ad Valorem Tax (TAVT) collections increased by $3.2 million, compared to the previous fiscal year.

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