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Georgia’s April tax revenues fall by 35.9 percent

Business COVID-19 Metro ATL Tucker

Georgia’s April tax revenues fall by 35.9 percent

Closeup of the Georgia State Capitol. Photo by Connor Carey. Source: Wikimedia Commons
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Atlanta, GA – The COVID-19 pandemic already is having a devastating effect on the state’s finances.

“The State of Georgia’s April net tax collections totaled nearly $1.84 billion for a decrease of $1.03 billion, or -35.9 percent, compared to April 2019 when net tax collections totaled $2.87 billion,” Gov. Brian Kemp’s Office announced. “Year-to-date net tax collections totaled $19.23 billion for a decrease of nearly $680 million, or -3.4 percent, compared to the previous fiscal year (FY) when net tax revenues totaled $19.91 billion.”

The state says the changes are “largely attributable” to the pandemic. Payment deadlines for motor vehicle, corporate and income taxes have caused a decline in the state’s revenues as well.

According to the state:

– Individual Income Tax collections for April declined by $732 million, or -46.2 percent, down from April 2019 when net Individual Tax revenues totaled roughly $1.58 billion. Individual Income Tax refunds issued – net of voided checks – decreased by $253.6 million or -44.3 percent. Individual Income Tax Return payments decreased by $830.9 million, or -88.9 percent, from last year. Individual Withholding payments for the month were up $15.4 million, or 1.6 percent, over last year. All other categories, including non-resident income tax payments, were down a combined $170.1 million.”

Gross Sales and Use Tax collections totaled $995.7 million for the month, which was a decrease of roughly $107 million, or -9.7 percent, compared to April 2019. Net Sales and Use Tax declined by $82.4 million, or -14.3 percent, compared to FY 2019, when net sales tax totaled $574.6 million. The adjusted Sales Tax distribution to local governments totaled $491.4 million for a decrease of $33.4 million, or -6.4 percent, from April 2019. Lastly, Sales Tax Refunds increased by nearly $8.8 million compared to FY 2019.

Net Corporate Income Tax collections decreased by nearly $219.1 million, or -70.6 percent, compared to FY 2019 when net Corporate Tax revenues totaled $310.4 million. Corporate Income Tax refunds – net of voids – decreased by $11.6 million, or -51.4 percent, from last year. Corporate Income Tax Estimated payments received were down $122.7 million or -64.5 percent. Corporate Income Tax Return payments decreased by $99.4 million or -78.3 percent. All other Corporate Tax types, including S-Corp tax payments, were down a combined $8.6 million.

Motor Fuel Tax collections increased by $80.3 million, or 50.9 percent, compared to FY 2019 on the strength of larger than ordinary, one-time settlement payments resulting from ongoing audit activities.

Motor Vehicle Tag & Title Fees fell by roughly $16.3 million, or -43.4 percent, in April while Title Ad Valorem Tax (TAVT) collections declined by $22.7 million, or -30.7 percent, compared to FY 2019.

Source: Office of the Governor. 

The economic downturn also will affect local governments.

According to a city memo, Tucker’s 2021 revenue projections are down 20 percent, or $2.9 million.

A recent update from City Schools of Decatur to parents says, “The Governor has asked state departments to prepare for a 14% reduction to the FY21 state budget. At this time, we do not have the specifics on how this reduction will affect the state funding school districts receive. We are looking at our FY21 budget to determine the potential impact to our district.”

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