ATLANTA – The economic slowdown in Georgia many economists have been predicting for this year hasn’t arrived yet.
The state Department of Revenue collected more than $2.12 billion in taxes last month, an increase of 8.7% over February of last year, the agency reported Friday. For the first eight months of fiscal 2023, tax revenues were up 5.9% over the same period in fiscal 2022.
Individual income tax receipts rose by 9.2% in February over the same month last year, as tax return payments increased by 31.3% while refunds were down 3.3%.
Net sales tax collections were healthy last month, increasing by 10.6% compared to February of last year.
Typically volatile corporate income tax revenues soared by 382% in February, with payments up by 97.5% and refunds down by 61.2%.
Tax collections on gasoline and other motor fuels – which had been virtually non-existent since Gov. Brian Kemp temporarily suspended the tax last March – still declined in February by 24.4% compared to the previous February. The governor reimposed the tax in mid-January.
The mid-year budget the General Assembly adopted this week includes $1.1 billion to help offset the loss of gas tax revenue that occurred last year.
Jeffrey Dorfman, the state’s chief economist, told Georgia House and Senate budget writers in January that state tax revenues are likely to drop sharply this year because last year’s huge increase in capital gains tax payments is not likely to be repeated.