Georgia tax collections continued to climb in March, giving officials hope of rebuilding the state's reserves.
State leaders are also touting the new numbers as a sign that the state can afford to cut income taxes.
Collections were up 10.7 percent in March over March 2010. That included a 12.5 percent increase in income tax collections and a net 16.4 percent hike in sales taxes. Overall, collections were up $107 million in March over the same month last year.
A few categories, such as cigarette and liquor taxes, fell. But about 80 percent of the state's revenue comes from sales and income taxes, so growth in those two areas is a good sign for the state. Increases in both are also usually a good indicator of an improving economy.
Tax collections have been picking up throughout the fiscal year, which ends June 30. For the first nine month of the fiscal year, collections are up 9.4 percent, or $960 million.
State officials are hoping the increases will allow them to rebuild the government's reserves, which were depleted during the recession.
The revenue news was released shortly after Republican leaders announced that they had come to an agreement on legislation to cut the income tax rate from a high of 6 percent to 4.6 percent.
"Georgia continues to experience strong revenue growth, a leading indicator of a rebounding economy," Gov. Nathan Deal said. "This positive trend will aid our ability in the final days of the legislative session to enact tax reforms that will increase our state's competitiveness and build a strong job-creating environment here at home."
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