March revenues are in negative territory, thanks to income tax cut

[private]The move by the General Assembly to cut the top state income tax rate is already having an effect: March revenues declined $8.2 million (0.5 percent) to $1.56 billion.

The major culprits in that drop were individual income tax collections (down $23.8 million to $709.8 million) and corporate income taxes (down $15.5 million to $81.3 million).

That slippage followed the passage of legislation that reduced the top income rate from 6 percent to 5.75 percent as Georgia tried to track the federal tax cut enacted last December.

Motor vehicle tag and title tax revenues also decreased $7.9 million.

Other revenue categories were more robust.

State sales taxes increased by $15.8 million (3.6 percent) to $450.98 million and motor fuel taxes were up by $4.7 million; and

© 2018 by The Georgia Report

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Tags: state revenues