Georgia’s net tax collections up 29% in June
(The Center Square) – Net tax revenue in Georgia was $2.5 billion in June, representing a $563 million increase – or 29.1% – compared with June 2020, Gov. Brian Kemp’s office said.
For fiscal year 2021, which ended on June 30, net tax collections were nearly $27 billion, a 13% year-over-year increase.
“Thanks to our work alongside the General Assembly to budget conservatively and protect both lives and livelihoods throughout a global pandemic, Georgia remains on solid financial footing,” Kemp said in a statement. “The COVID-19 crisis highlighted the importance of states living within their means, and Georgia did so without widespread layoffs, tax hikes, furloughs, or drastic cuts to essential services.”
Individual income tax collections for June totaled about $1.3 billion, representing an increase of about $257 million – or 24.7% – compared with fiscal year 2020. Individual income tax refunds decreased by $600,000 – or about 0.4%.
Net sales and use tax collection increased by $127.4 million – or 24.6% – compared with 2020. The adjusted sales tax distribution to local governments was $629.6 million, a 22.6% increase compared with fiscal year 2020.
Corporate income tax collections were $325.8 million for the month, representing about a $227.5 million increase – or 231.6% – compared with fiscal year 2020.
Georgia Budget Policy Institute Senior Policy Analyst Danny Kanso said Georgia will record enough revenue for the 2021 fiscal year to boost state reserves close to the state maximum of $3.8 billion – or 15%.
“While lawmakers should exercise caution due to the highly unusual economic events of the prior year, state leaders have the necessary resources – including nearly $5 billion in federal aid from the American Rescue Plan – to immediately reverse the $850 million in cuts to health care services and core state agencies like the Department of Human Services, including the nearly $400 million cut from our state’s public schools, and extend meaningful economic relief to the millions of Georgians who continue to struggle in the wake of the pandemic,” Kanso said in a statement.
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