Georgia's economy saw an economic bump over the past year, according to a new report released by the governor’s office.
Tax revenues peaked by 7 percent in June, nearly $146 million more than June 2018. Taxes collected during the 2019 fiscal year, which ended on June 30, were up nearly 5 percent overall, a total of $23.8 billion, according to the report released by Gov. Brian Kemp. The new fiscal year started on July 1.
Revenue streams from income tax and sales tax collections made up the bulk of the surplus.
Income tax revenue was up by 10 percent. with the state collecting $1.04 billion. That’s about $96.3 more million than the prior fiscal year. Most of it was due to non-resident return payments. People who live outside of Georgia but are employed or receive income from sources in the state are required to file an income tax return in the state, according to Georgia’s Department of Revenue. Those non-residents contributed about $25 million in taxes.
Corporate income tax collections also increased. The state collected a total of $225.8 million, about 24 percent more than last year. On the other hand, corporate income tax refunds decreased by $9.4 million. Individual income tax refunds also were down, by $71.9 million.
Gross sales and use tax collections contributed to a sizable portion of the increased revenue. Almost $1.07 billion was collected for an increase of more than 7 percent over 2018.
Georgia lost some revenue from its motor vehicles fees. Vehicle tag and title fees fell by $4.1 million. Title ad valorem tax collections decreased by $10.8 million compared to June of last year.
The 2020 fiscal year kicked off on July 1 with a spending plan of $27.5 billion. The budget signed into law by Kemp in March increases year-over-year state spending by 5 percent.