by T.A. DeFeo
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 percent, 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 percent, or nearly $5.2 million, gross sales and use tax collections of nearly $1.6 billion increased by 4.5 percent, 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 percent, or $36.8 million, over a year ago.
Corporate income tax collections of nearly $123.9 million increased by 28.4 percent, or $27.4 million, from July 2023. Motor fuel tax collections of more than $191.3 million for July increased by 4.5 percent, 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 percent from June 2023. However, the net tax revenue of more than $32.9 billion for fiscal 2024 decreased by 0.5 percent, 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 percent 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.
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T.A. DeFeo is a contributor to The Center Square.
Photo “Georgia Capitol Building” by DXR CC BY-SA 4.0.
