The big fuel tax increase lawmakers approved this year continued to drive up state revenue collections in September.
Gov. Nathan Deal on Tuesday announced an 8.7 percent increase in tax collections in September over the same period last year. The gain was less than 5 percent excluding the new fuel taxes.
For the first quarter of fiscal 2016, which began July 1, collections are up 9.4 percent. That amounts to an extra $438 million in state coffers.
The news for Georgia’s economy is somewhat mixed. Personal income tax collections remain strong, which is a good sign. Sales tax collections changed little and gains there are lagging behind income tax increases.
The second biggest area of increase - after income taxes - are the new fuel taxes approved by lawmakers. Fuel tax collections increased 71 percent in September over the same period last year.
For the first quarter, collections are up 49 percent, and the state has taken in an extra $124.8 million. That would work out to about an extra $500 million over the course of a year if the increases continue at the same pace.
The fuel tax hike was part of a package lawmakers passed during the 2015 session that is supposed to add about $1 billion a year for new road and bridge projects across the state.
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