State revenues increased again in May

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After dropping by 2.9 percent in April, Georgia’s tax collections resumed their upward path in May with a 3.1 percent increase over revenues for May 2013.

Revenue collections for May were $1.39 billion, compared to $1.35 billion last year, according to figures released by the state revenue department.

For the 11 months of fiscal year 2014, state revenue collections are $16.12 billion, a 4.5 percent increase over the $15.42 billion for the same 11-month period in fiscal year 2013.

“With one more month in the fiscal year, it looks like we will end the year able to fully fund the education mid-year adjustment and increase the revenue shortfall reserve by $200 hundred million or so,” said Alan Essig of the Georgia Budget & Policy Institute.

“Even so, the revenue shortfall reserver is only about half of what it was before the Great Recession,” Essig added.

For the largest revenue categories:

Individual income taxes increased 3.1 percent in May to $675.2 million; for the fiscal year, this has grown by 1.5 percent to $8.08 billion.

Net state sales taxes grew by 2.5 percent in May to $428.8 million; for the fiscal year, this category is down by 3.8 percent to $4.72 billion, a decrease attributed to a new state law that removed the sales tax from motor vehicle sales and replaced it with a vehicle title fee.

That motor vehicle title fee, on the other hand, increased by 24.8 percent in May to $107.3 million; for the fiscal year, these title fees have grown by 169.5 percent to $987.3 million, making up for the drop in state sales taxes.

Corporate income tax collections dropped by 72.2 percent to just $7.4 million; for the fiscal year, however, corporate income taxes have increased by 16.1 percent to $743.3 million.

© 2014 by The Georgia Report

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Tags: Georgia revenue collections