State tax collections up, but growth not as robust as 2013
While Georgia’s economy is improving, state tax collections aren’t growing like they were last year.
Collections were up 3.1 percent in May and have increased 4.5 percent for fiscal 2014, which ends June 30. Collections are running about $700 million ahead of last year.
This year’s $20 billion state budget is predicated on a 3.7 percent rate of growth, so the state will wind up with a surplus.
However, that surplus could be less than last year’s, when collections grew 5.9 percent, or $950 million.
Sales tax collections are down, in part because of a change in state law that eliminated sales taxes on car purchases. Instead, buyers are charged one-time fees. Collections for motor vehicles fees are way up this year.
Department of Revenue officials said sales tax collections have also taken a hit from the General Assembly’s decision to eliminate sales taxes on energy used in manufacturing, implementation of the agricultural tax exemption program and last summer’s sales tax holiday for back-to-school shoppers.
The General Assembly approved several more tax exemptions during the 2014 session, including another back-to-school tax holiday.
About the Author
James Salzer has covered state government and politics in Georgia since 1990. He previously covered politics and government in Texas and Florida. He specializes in government finance, budgets, taxes, campaign finance, ethics and legislative history
