(The Center Square) — Georgia’s tax collections continue to decline, even as Gov. Brian Kemp ordered a halt to collecting motor fuel taxes.
In August, state officials reported tax collections of nearly $2.3 billion. However, total general fund receipts decreased by 1.1% or nearly $25.4 million from last August, when tax collections surpassed $2.3 billion.
Last week, Georgia Gov. Brian Kemp, a Republican, declared a state of emergency and suspended the state’s excise tax on motor and locomotive fuel. The governor said the suspension, which remains in effect until Oct. 12, is necessary because of high inflation.
The state collected roughly $182.3 million in motor fuel taxes in August. Even without the motor fuel tax collections, state officials said other net tax collections dropped by 4.8%, or $110 million, from a year ago.
Last year, Kemp signed House Bill 304 to suspend gas tax collections, a prohibition he extended to run through Jan. 10. The suspension cost the state roughly $1.7 billion.
Despite the decrease in August, tax collections of nearly $4.8 billion so far in fiscal 2024 are up 5.8% or roughly $263.8 million from last fiscal year.
Individual income tax collections exceeded $1.2 billion during the month, down 5.2% or $68.2 million from a year ago.
Meanwhile, gross sales and use tax collections for August totaled more than $1.5 billion, an increase of 3% or $43.8 million from last year. However, net sales and use tax collections decreased by 10.1% or $74.1 million from August 2022.
