Thanks to gas tax increase, state revenues growing strongly

[private]The gasoline tax increase enacted in Georgia last year is still fueling a massive growth in state collections, according to figures released Monday.

State revenues increased by a whopping 10 percent in January, growing by $186.7 million over the same month last year. For the first seven months of the current fiscal year, state collections are up by $1.02 billion over last year, an 8.9 percent growth rate.

If that growth rate is maintained through June 30, state revenues will be more than $1.7 billion higher than estimated in the original budget adopted for fiscal year 2016.

The increased motor fuel taxes – they went up by about 6 cents per gallon on July 1 — are responsible for the largest parts of those increases, accounting for roughly one-third of the higher monthly and yearly revenue hikes.

Motor fuel tax collections have grown by $350.8 million in fiscal year 2016, an increase of 59.8 percent, to $938 million. Title ad valorem tax collections on autos are up by $69.8 million (15.2 percent) to $528.3 million.

For the year, individual income taxes are up $410.8 million (6.7 percent) to $6.57 billion. Corporate income taxes have increased by $27.9 million (6.5 percent) to $458.1 million.

State sales taxes remain relatively flat, growing by just 0.8 percent this fiscal year to $3.23 billion, an increase of $24.8 million.

© 2016 by The Georgia Report

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Tags: Georgia revenues , motor fuel tax