State revenues grew 6.7% in July

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Georgia’s revenue collections totaled $1.41 billion in July, which was $88.5 million higher (a 6.7 percent improvement) than the revenues reported for July 2012.

The state’s largest revenue source, the individual income tax, registered a robust 8.6 percent growth rate for July with collections of $758.4 million compared to $698.1 million for the same month last year.

The second-largest source of revenue, the sales tax, continued to slump in part because of a recent change in the state’s motor vehicle tax law.

As of March 1, the sales tax on vehicle sales was abolished and replaced with a one-time tag title fee. As a result of that change, sales tax collections have declined while vehicle tag tax collections have increased.

The revenue department collected $430.1 million in net sales taxes, a 6.6 percent dropoff from the $460.3 million in July 2012 sales tax revenues.

However, motor vehicle tax collections jumped by $62.2 million to $83.5 million in July, which was a whopping 291.1 percent increase over the same month last year.

Motor fuel taxes also grew by a healthy 10.7 percent in July to $88.6 million, after July 2012 proceeds of $80.1 million.

© 2013 by The Georgia Report

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Tags: income tax , motor vehicle tag tax , sales tax , state revenues