Georgia reports increased revenues to start fiscal 2025
(The Center Square) — With one month in the books, Georgia’s tax collections seemingly started the year on a positive note after ending last fiscal year with decreased collections.
Peach State officials said this week that total General Fund receipts for July, the first month of fiscal 2025, surpassed $2.5 billion. According to state numbers, that is an increase of 2.7%, or $66.3 million, over July 2023 in fiscal 2024, when net tax collections totaled nearly $2.5 billion.
While individual income tax collections of more than $1.2 billion decreased by 0.4%, or nearly $5.2 million, gross sales and use tax collections of nearly $1.6 billion increased by 4.5%, or $68.3 million, over a year ago. State officials also reported that net sales and use tax collections of more than $808.9 million increased by 4.8%, or $36.8 million, over a year ago.
Corporate income tax collections of nearly $123.9 million increased by 28.4%, or $27.4 million, from July 2023. Motor fuel tax collections of more than $191.3 million for July increased by 4.5%, or $8.2 million, over July 2023.
Last month, Georgia revenue officials reported some good news for June, the final month of fiscal 2024, as the state’s net tax collections increased 6.5% from June 2023. However, the net tax revenue of more than $32.9 billion for fiscal 2024 decreased by 0.5%, or $182.2 million, from fiscal 2023.
Aside from motor fuel tax collections, which state officials noted were suspended for more than half the year, net revenues for fiscal 2024 declined 3.4% from fiscal 2023.
According to the Georgia Budget and Policy Institute’s 2025 Georgia Budget Primer, the Peach State’s Revenue Shortfall Reserve is “maxed out” at $5.4 billion for the fourth consecutive year. Concurrently, the group estimates that Georgia’s undesignated reserves should hit $11.6 billion during fiscal 2025.
