Georgia revenue growth slows in February amid big spending

Credit: JOHN SPINK / AJC

Credit: JOHN SPINK / AJC

Georgia tax collections nudged up just 1% in February, one of the smallest increases since the state began recovering from the COVID-19 pandemic recession in 2020.

But sales tax collections were strong, and revenue remains well ahead of fiscal 2021.

That’s good news for Gov. Brian Kemp and lawmakers, who are currently considering proposals to boost spending in a big way, including providing raises and bonuses for state and university workers and teachers.

For the first eight months of fiscal 2022, which ends June 30, the state has seen a 16% increase in collections, or $2.72 billion. That’s impressive considering the state is coming off a record fiscal 2021, when the state wound up with a $3.7 billion surplus.

Income tax collections were off 6.8% from February 2021, largely because more money was paid out in refunds. Net sales tax collections were up 12.8% over February 2021.

Income and sales taxes make up the majority of state revenue.