Georgia’s net tax revenue saw growth in September, according to figures released Tuesday by the governor’s office.
The state’s net tax collections in September were 0.7 percent more than September 2018.
Georgia collected about $2.25 billion. That’s $15.7 million more than last year when net tax collections were $2.23 billion.
Yearly collections up to September also exceed what was collected by the same time period in 2018.
Georgia has collected 0.4 percent more year to date – around $5.83 billion than through September 2018.
Sales and use taxes and corporate income taxes were major contributors to the increase.
Gross sales and use tax collections increased by $39.2 million, or 3.9 percent. The adjusted sales tax distribution to local governments increased by $34.2 million, or 6.9 percent, over the last fiscal year.
Net corporate income tax collections increased by $46.2 million, or 22.2 percent. However, net sales and use taxes decreased by about $5.3 million, a 1 percent drop compared to last year.
Individual income tax collections in September were 2.4 percent less than less year at $1.13 billion.
Income taxes have a more negative effect on economic growth than sales and property taxes, according to the Tax Foundation. That’s because income taxes rely on wages and savings, while consumption taxes fall on consumer spending rather than earnings, the study said.
Georgia finished 14th in Tax Foundation’s study that ranks how dependent states are on individual income taxes.
September paints a better picture of Georgia’s economy than August.
Georgia’s net tax collection for August was 2.8 percent less than the same time in 2018. Individual income tax collections for August were 6.3 percent less than August 2018.