(The Center Square) — Georgia officials again reported decreased net tax collections, though overall, the state’s finances appear to be strong, according to state numbers and an analyst for a leading Georgia policy group.
While its net tax collections surpassed $2.3 billion in March, it marked a decrease of 12.6% or $338.7 million compared to last year, when net tax collections totaled nearly $2.7 billion for the month.
So far this fiscal year, net tax revenue totaled nearly $23.5 billion, a 0.5% or $115.6 million decrease from the same nine months in fiscal 2023. Officials noted that the state’s motor fuel excise tax was suspended, and aside from motor fuel taxes, revenues for the nine months that ended on March 31 were down 4.3% from the same period a year ago.
Individual income tax collections totaled $998.3 million, a decrease of 16.1% or $191.2 million compared to last year when they totaled nearly $1.2 billion. Officials said that is partly attributable to a measure lawmakers passed lowering income tax rates effective Jan. 1.
“Through nine months of FY 2024, Georgia’s tax revenue collections remain strong and more than sufficient to finance the costs of the recently enacted AFY 2024 budget,” Danny Kanso, the Georgia Budget and Policy Institute’s director of legislative strategy and senior fiscal analyst, said in a statement to The Center Square. “Going forward, our leaders can continue making greater use of the unprecedented undesignated reserves that are likely to remain unspent and available to be deployed for priorities strongly supported by most Georgians, such as replacing aging school buses and improving access to affordable childcare statewide.”