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Introduction: An Effective November for Georgia
ATLANTA – Well, what a jolly good month it’s been for Georgia’s tax collections in November! The net tax haul reached around $2.38 billion, marking a respectable increase of $52.9 million, or a tidy 2.3%, over the previous fiscal year. A rather splendid outcome, don’t you think?
However, one must consider the broader picture. Year-to-date, total tax revenue collections stood at nearly $13.02 billion. Despite the November success, this was a smidgen less than the same period last year—a decrease of a mere $8.3 million, or 0.1%. This little adjustment is largely due to some unique circumstances explained in more detail below.
Influencing Factors and Adjustments
Historical Comparisons Affected
It’s worth noting, dear reader, that these comparisons were influenced by the motor fuel tax suspension in 2023. When we strip away these motor fuel tax adjustments, the revenues for November appear down by 3.4% from a year ago. Meanwhile, year-to-date collections dropped by 2.2%.
Hurricane-Related Adjustments
November’s gains were unfortunately counteracted by some hurricane-related tax delays. Filing and payment deadlines for income taxes were extended, which affected collections aside from payroll withholdings. This clever manoeuvre, announced on October 3, deferred return and payment deadlines all the way to May 2025. Thus, collections for both individual and corporate income taxes took a bit of a hit during this period.
Dissecting the Data: Tax Categories Analysis
How quaint! Let’s dive deeper into the diverse tax categories for a clearer picture of where increases and decreases lie.
Individual Income Tax Woes
Individual Income Tax saw a slight decline during November, totalling roughly $1.18 billion. This was down from the nearly $1.29 billion of the previous fiscal year, marking a decrease of $106.4 million, or 8.3%.
Here’s a quick glance at the details:
- Refunds decreased by $11.6 million or 14.4%
- Income Tax Withholding payments dropped $113.7 million or 8.9%
- Estimated Tax payments rose by $2.8 million or 21.5%
- Other tax payments decreased by $7.1 million
Sales and Use Tax Success
On a brighter note, Gross Sales and Use Tax collections in November were quite chipper. They reached about $1.60 billion, resulting in a fine increase of $97.3 million, or 6.5%. The net increase was $44.1 million, or 5.9%, indicating a healthy appetite for growth in this area. Local government distribution also saw an uptick, fetching $802.1 million, an increase of $50.2 million compared to last year.
Corporate Income Tax Challenges
Unfortunately, Corporate Income Tax collections did not share the same jubilance. A decline of $12.9 million, or 30.6%, was noted compared to the previous year, when collections hit $42.3 million. This decrease comprised:
- Refunds increased by $2.2 million or 7.5%
- Estimated payments decreased by $11.2 million or 25.7%
- Other payments rose by a mere $0.5 million
A Boost From Motor Fuel Taxes
Interestingly, Motor Fuel Taxes saw a significant boost. Collections increased by $130.8 million, bouncing back from last November when Governor Kemp’s Executive Order to suspend the fuel tax was in place. Motor Vehicle Tag & Title Fees faced a slight dip by $0.1 million or 0.2%, but Title ad Valorem Tax (TAVT) collections grew by nearly $2 million or 2.8%.
In sum, Georgia’s November tax collections reveal a delicate dance between varying increases and challenges. The factors involved reflect the state’s dynamic economic landscape and the intricacies of its policies. Fancy a glance at more details? Feel free to explore the links sprinkled throughout this piece!
Isn’t Georgia’s tale of taxes just as rich and intricate as afternoon tea?
