Why did Georgia’s tax revenues spiral downward again? Gov. Kemp issues warning

Georgia tax collections continued their downward spiral last month, falling 5.4% from April of last year, the state Department of Revenue reported Friday.

The broader picture for the first 10 months of fiscal 2024 was similar. While net tax revenue was down only 1.2% between last July and the end of April, that doesn’t reflect the reality that the state was not collecting sales taxes on gasoline and other motor fuels during the first half of the last fiscal year.

Not counting the fuel taxes the state has brought in thus far in fiscal 2024, tax receipts for the first 10 months of the fiscal year declined by 4.6%.

Individual income taxes fell in April by 8% compared to the same month a year ago, as tax refunds increased by 31.4% while payments were down 11.5%. Net sales tax receipts also declined by 3%.

Usually volatile corporate income tax collections remained nearly flat last month, increasing by 0.5%.

With tax receipts down $341.3 million for fiscal 2024 and just two months left in the fiscal year, it appears likely the state will show revenues down when the year ends on June 30.

Gov. Brian Kemp warned this week after signing a robust $36.1 billion fiscal 2025 budget that times might be leaner when he and the General Assembly put together next year’s spending plan.

This story was originally published May 13, 2024 at 9:49 AM.