Georgia’s net tax collections for June totaled $1.76 billion for an increase of $182.25 million, or 11.5 percent, compared to the month-ended June 2013, Gov. Nathan Deal announced this week.
Year-to-date, net tax-revenue collections totaled nearly $17.9 billion for an increase of roughly $879.25 million, or 5.2 percent, compared to the same point last year, when net tax revenues totaled $17 billion through the end of June 2013.
Changes within the following major tax categories explain the net increase in June:
Individual income tax
Collections in June totaled $885.25 million, up from nearly $791.5 million in June 2013, for an increase of $93.75 million, or 11.9 percent.
The following notable components within individual income tax combine to make up the net increase:
• Estimated payments for June were up $8.5 million or 6.6 percent.
• Income-tax refunds issued (net of voids) during the month were down $30.25 million, or minus-42.4 percent.
• Individual income-tax
withholding during the month was up $64.5 million, or 9.5 percent.
• All other individual tax categories, including return payments and assessments, were down $9.5 million.
Sales and use tax
Collections increased $47.5 million, or 6 percent, compared to June 2013, the third month in which gross sales tax declined due to the implementation of a title ad valorem tax, which displaced tax revenue to motor-vehicle fees.
June’s net sales-tax collections increased $34.25 million, or 8.3 percent, compared to FY 2013 despite a large year-over-year change in the distribution to local governments, which increased nearly $23.75 million. Net refunds fell $10.5 million compared to the previous fiscal year.
Corporate income tax
Collections for June 2014 increased $44.25 million, or 28.2 percent, compared to FY 2013, when net corporate-tax revenues totaled $156.75 million.
The following notable components within corporate income tax make up the net increase:
• Refunds issued (net of voids) were down roughly $1 million, or minus-8 percent.
• Corporate estimated pay-
ments in June were up approximately $43 million, or 27.2 percent.
• All other corporate-tax categories, including S-corp and return payments, increased $250,000.
Fee collections totaled nearly $92.5 million, an approximate increase of $5.5 million compared to last June, when collections totaled $63.5 million versus $66.5 million in June of this year.
Tax reform impacts
House Bills 386 and 266 had significant impacts on Georgia’s tax structure that influenced current month- and year-to-date revenue collections across multiple tax-collection categories. The increase in motor-vehicle tag-and-title fees is the result of the March 1, 2013, implementation of the title ad valorem tax. Sales-tax collections have been impacted by the elimination of the auto-sales tax, reduction in the sales tax on energy used in manufacturing, implementation of the Georgia Agricultural Tax Exemption program, and reinstatement of the sales-tax holiday. Individual income tax has been impacted by the marriage-penalty reduction effective Jan. 1, 2013.