October Tax Revenues Down 3.4%

The State of Georgia's net tax collections during the month of October totaled $2.53 billion, for a decrease of $89.7 million, or 3.4 percent, compared to FY 2024 when net tax collections totaled $2.62 billion for the month. Year to date, net tax revenue collections totaled almost $10.64 billion, for a decrease of $61.1 million, or 0.6 percent, compared to October 2023 when net tax collections totaled $10.7 billion.

Year-to-year comparisons were affected by the 2023 motor fuel tax suspension. Net of motor fuel tax changes, revenues for the month of October were down 7.7 percent from the same month a year ago while year-to-date collections were down 1.9 percent. Net collections for October were also negatively impacted by the hurricane-related income tax filing and payment deadline extensions announced on October 3. Return and payment deadlines for both individual and corporate income taxes, from that date through April 2025, were extended to May 1, 2025, likely reducing collections of both individual and corporate income taxes except for payroll withholding collections.

The changes within the following tax categories account for October's overall net tax revenue decrease:

Individual Income Tax: Individual Income Tax collections during October totaled almost $1.26 billion, down from a total of nearly $1.38 billion in fiscal year 2024, for an overall decrease of $119.6 million or 8.7 percent.

The following notable components within Individual Income Tax combine for the net decrease:

• Individual Income Tax refunds issued (net of voided checks) decreased by $27.2 million or 10 percent
• Income Tax Withholding payments for October decreased by $49.3 million, or 3.8 percent, from FY 2024
• Individual Income Tax Return payments decreased by $104.3 million, or 36.5 percent, from FY 2024
• All other Individual Tax categories, including Estimated payments, were up a combined $6.8 million

Sales and Use Tax: Gross Sales and Use Tax collections in October totaled $1.51 billion, which was an increase of $2.3 million, or 0.2 percent, over FY 2024. Net Sales and Use Tax decreased by $7.5 million, or 1 percent, compared to last year, when net Sales Tax revenue totaled $751.4 million. The adjusted Sales Tax distribution to local governments totaled $748 million, which was a decrease of $4.3 million, or 0.6 percent, from last year's adjusted distribution total of $752.3 million. Sales Tax refunds increased by $14.1 million compared to FY 2024.

Corporate Income Tax: Corporate Income Tax collections for October declined by $62.8 million, or 47.4 percent, compared to last year, when net Corporate Tax revenues totaled $132.3 million.

The following notable components within Corporate Income Tax make up the net decrease:

• Corporate Income Tax refunds issued (net of voids) were up $37.9 million compared to October 2023
• Corporate Income Tax Return payments decreased by $23.5 million, or 40.8 percent, from FY 2024
• All other Corporate Tax payments, including Corporate Estimated payments, were down $1.4 million

Motor Fuel Taxes: Motor Fuel Tax collections for October increased by $105.6 million, or 146.1 percent, compared to last year, when Governor Kemp's Executive Order to suspend the fuel tax and give Georgians relief from high gas prices, went into effect in mid-September of 2023, thereby impacting October collections.

Motor Vehicle - Tag & Title Fees: Motor Vehicle Tag & Title Fee collections for October remained materially flat compared to last year, at a total of $32.1 million, while Title ad Valorem Tax (TAVT) collections decreased by $6.2 million, or 8.5 percent, from FY 2024.

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