State tax collections see August jump, third straight month of gains

By Aaron Gould Sheinin

The Atlanta Journal-Constitution

Georgia's tax collections in August showed a double-digit gain over last year, keeping the state's budget plan on track.

Gov. Sonny Perdue on Wednesday announced that tax collections in August were nearly 13 percent above the same month a year ago. It is the third consecutive month of positive revenue collections. Revenues were up 3.8 percent in June and 4.7 percent in July.

The biggest improvement in August came from individual income taxes, which were up 24 percent over August 2009, a difference of more than $120 million.

In August 2009, the state was still issuing refunds to individual taxpayers due to technical problems, Perdue spokesman Bert Brantley said. "So, the 24 percent jump ... is mostly due to not having the negative dollars going out like we did last August."

Sales tax collections were up 3.3 percent.

Other gains were made in tobacco taxes, up 12.4 percent, and motor fuel taxes, which were up 22.2 percent.

For the fiscal year, tax collections are up 8.6 percent over the same period last year. The state budget for fiscal 2011, which began July 1, is predicated on a 4 percent growth in tax collections.

Brantley said the 4 percent cuts Perdue ordered in July for state agencies will remain in place and that the modest growth "matches our revenue estimate for the year."

Money, money, money

2010 state revenues vs. 2009

Individual income tax collections

August 2010: $628 million

August 2009: $506 million

Difference: 24.1 percent

Gross sales tax collections

August 2010: $802 million

August 2009: $776 million

Difference: 3.3 percent

Motor fuel tax collections

August 2010: $80.4 million

August 2009: $65.8 million

Difference: 22.2 percent

Fiscal year to date (July 1-Aug. 31)

Overall tax collections: $2.33 billion

Same period a year ago: $2.15 billion

Difference: 8.6 percent