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NOTES FROM THE SENATE

BY SENATOR JACK HILL,

4th DISTRICT

 

October 10, 2014

FIRST QUARTER'S REVENUES SHOW SOLID GROWTH

 

September completes the first quarter of the FY 15 Fiscal Year.  A solid 5.0% growth in September revenues completes a strong first quarter of FY15 with an over growth of 4.7% on total collections of $4.68 billion for the quarter.  The increase of $211.3 million for the three months is ahead of budget projections by $70.6 million.

 

SEPTEMBER REVENUES TOTAL $1.808 BILLION

 

September's 5.0 growth rate featured an encouraging increase in Individual Income Taxes of $64.3 million with a very positive 7.3% growth rate.  At $949.9 million, Individual Income Taxes made a strong showing this month. Withholding taxes were up $44 million or 6.1%.  Estimated Income Taxes were up $13.7 million or 9.2%.  Refunds in Income Taxes were down -7.1% or -$2.5 million.

Net Sales Tax collections continued to show positive growth for the state with a monthly increase of 5.7% or $24.1 million on revenues of $445.6 million.

 

Motor Fuel Taxes slipped to a net -6.9% on combined motor fuel tax collections of $84.9 million.  Both excise taxes and sales taxes were negative at -2.9% and -9.8% respectively.  Corporate Income taxes increased 2.7% on collections of $184.6 million. Estimated payments were up $13.2 million or 8.5% and refunds were also up 104.7% or $8 million.

 

Tobacco taxes and alcoholic beverages taxes were down -4.8% and positive 3.9% respectively.


 

Title/tag fee collections were somewhat flat with a 0.7% increase on fees totaling $98.9 million.

 

YEAR TO DATE NUMBERS REFLECT STRONG QUARTER

 

The first three months of FY15 brought in $2.433 billion in Individual income taxes, a growth rate of 3.8%. Net Sales Taxes to the state totaled $1.343 billion and grew at a 6.7% rate, continuing a positive trend.

 

Motor Fuel Taxes showed a net decrease of -3.0% for the quarter with excise taxes down -0.9% and sales taxes down -4.7%.  So far that category has taken in $254.5 million for roads and bridges of the state.

 

Corporate Income Taxes continued a positive run, showing a 7.4% increase or $15.4 million on revenues of $224.4 million for the quarter.

 

Tobacco Taxes were down 4.0% for the quarter and alcoholic beverage sales taxes were up for a 4.4% gain, I guess reflecting the beginning of football season!

 

Year to Date Tag/Title fees have increased $22.5 million or 8.4% for the quarter. 

 

HOW THE INCREASE FOR THE  FIRST QUARTER BREAKS DOWN:

 

The $211.3 million revenue increase for the first quarter shows how the major collection areas contributed to the total:

 

               Individual Income Tax     42.5%

               Net Sales Taxes                 39.6%

               Corporate Taxes                 7.2%

               Tag/Title Fee                     10.6%                

 

A LOOK AT SOME SALES TAX CATEGORIES YEAR TO DATE/FIRST QUARTER

 

One of the positives so far this fiscal year has been the return of steady growth of net sales tax revenues, up 6.7%.  Maybe it is a good time to look within that category and identify the sales tax increases on specific areas.

 

First, only two categories are actually down for the first three months:  car and automotive, -0.7% and motor fuel tax at -4.7%.

 

In descending order, here are the other categories: Construction up 40.2%, Accommodations 14.3%, Manufacturing 11.7%, Wholesale Trade 8.4%, Utilities/Energy 7.5%, Retail 6.8%, Food-Bar-Store 6.3%, Home Furnishing 5.1%, Miscellaneous Services 3.3%, and General Merchandise 2.8%.   So, virtually every category had a very positive increase year to date. 

 

Outside of motor fuel, generally the totals for the first quarter are strong and the state is meeting the FY 15 Budget very satisfactorily.

 

 

 

I may be reached at
234 State Capitol, Atlanta , GA 30334
(404) 656-5038 (phone)
(404) 657-7094 (fax)
E-mail at Jack.Hill@senate.ga.gov
Or Call Toll-Free at
1-800-367-3334 Day or Night
Reidsville office: (912) 557-3811

 

 

Visit the Legislature Home Page at www.legis.state.ga.us


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