(ATLANTA, Ga.) — Georgia’s net tax collections fell $205.7 million in May, compared to the year before. According to state officials, that puts the loss at 7.6% compared to May 2022.
Despite the drop, a spokesman for Gov. Brian Kemp said the state is in a good position to avoid economic issues.
“The numbers we are seeing are in line with the predictions voiced by the governor and economic experts earlier this year. With a fiscally responsible and conservative approach to the state’s budget,” the spokesman told WSB-TV. “Governor Kemp and legislative partners have ensured that Georgia is well positioned to weather whatever the future holds, including a possible recession.”
Comparatively, officials said tax collections from January to May were only up 0.2% compared to the year before.
Analysis by the state places says changes to collections policies were a reason, particularly within individual income taxes and a drop in the amount the state took in for motor vehicle tag fees and title fees.
Specifically, officials said tax refunds issued were up 119.3%, the amount Georgians withheld on their paychecks increased $80.9 million, and income tax return payments fell 63.8% compared to the year before.
For non-resident income tax returns, payments were up $11.7 million.
When it comes to the tag and title fees in May, there was $0.4 million decrease and a $2.3 million decrease for title ad valorem taxes.
While income tax collections decreased along with the motor vehicle-related fees, sales and use tax and corporate taxes both increased by more than 30% each.
State officials reported an increase of $32.1 million for sales and use tax, though there was also a 93.6% increase in sales tax refunds compared to May 2022. Separately, taxes on businesses and corporations increased 38.6%, for a total of $78.8 million in the month of May.
According to Georgia officials, the amount of corporate tax refunds decreased close to 50%, while corporate tax returns increased 33.7%. Across other tax categories for businesses in Georgia, payments were up $13.4 million.
All said and done, Georgia took in $2.49 billion for May, compared to the $2.7 billion the year before.