Latest Georgia tax receipts offer more evidence the boom is over

The latest state revenue figures offer further evidence that years of rising tax receipts may be over.

Georgia’s net tax collections were up about 1.8% for the first half of fiscal year 2025, which began July 1, according to a report released by Gov. Brian Kemp’s office Friday. But the increase was due in part to the fact that Kemp suspended Georgia motor fuel tax collections for two and a half months last year. When that’s accounted for, state revenue is down about 1% this year.

The report is the last glimpse of state revenue trends before Kemp releases budget proposals for the rest of fiscal ‘25 and for 2026 on Thursday. Georgia and other states have benefited from years of increasing revenue — the result of a federal spending binge, a post-COVID-19 lockdown economic boom and other factors.

That boom has gradually ebbed, but it has left Georgia with about $16.5 billion in reserves. Kemp and legislative leaders have said they want to spend some of that money on hurricane aid, tax refunds, child care tax credits and other priorities.

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Credit: AP