Georgia Continues To See Increasing Tax Collections

By T.A. DeFeo | The Center Square contributor, The Center Square Georgia

February 14, 2023

(The Center Square) — Georgia's taxman continues to report increasing collections.

The state's net tax collections for January were shy of $3 billion, an increase of 1.1% or $32.9 million from January 2022. Year-to-date, Georgia's net tax collections surpassed $18.8 billion, an increase of 5.6% or roughly $1 billion.

Despite the overall increase, individual income tax collections decreased by roughly 4% or $70.1 million compared to last year.

The state reported that its gross sales and use tax collections for January exceeded $1.7 billion, an increase of 10.8% or $167.7 million over last year. According to state numbers, "net sales and use tax increased by 9.9% or $78.4 million over a year ago."

The news comes as state senators weigh House Bill 18, the amended fiscal 2023 budget, which the state House overwhelmingly approved earlier this month.

The House's version anticipates more than $32.5 billion in revenue, an increase of 7.8% or nearly $2.4 million over the original fiscal 2023 budget. The House-approved version allocated those funds to one-time spending for various projects ranging from economic development to technology to safety and security.

In unveiling his proposed amended fiscal 2023 budget proposal, Gov. Brian Kemp, a Republican, highlighted $1 billion in "undesignated regular surplus" for taxpayer refunds between $250 and $500. The governor's proposal also includes $1.1 billion for one-time Homeowner Tax Relief Grants to provide a $20,000 credit on the assessed home value for homesteads for the 2023 tax year.

"Governor Kemp has announced an income tax refund of $250 per individual, as well as a $500 property tax refund to help Georgia families deal with a 40-year high inflation," state Sen. John Albers, R-Roswell, wrote in his February 2023 newsletter to constituents and sent on Friday. "Thanks to our strong conservative budgeting and opening the state for business, we are working swiftly to return money back to taxpayers."

The focus of the work of The Center Square Georgia is state and local-level government and economic reporting that approaches stories with a taxpayer sensibility.