The State of Georgia’s net tax collections for March totaled nearly $1.90 billion for an increase of almost $67 million, or 3.7 percent, compared to March 2020, when net tax collections totaled $1.83 billion. Year-to-date, total net tax collections approached $18.94 billion, for an increase of roughly $1.55 billion, or 8.9 percent, compared to FY 2020 when net tax revenues totaled $17.39 billion after nine months.The deferred commencement of Individual Income tax return processing – concurrent with the Internal Revenue Service (IRS) guidance that directed the acceptance and processing of 2020 Individual tax year returns beginning February 12, 2021 – delayed income tax refund processing and contributed significantly to the highly favorable net tax collection revenue variance reported in February. Subsequently, an acceleration of refund processing in the March reporting period reduced the impact of the refund processing delay on year-to-date net revenue collections.The changes within the following tax categories help further explain March’s overall net tax revenue increase:
Individual Income Tax: Individual Income Tax collections totaled $931.7 million for the month, which was a decrease of $39.7 million, or -4.1 percent, compared to last year when Individual Tax collections totaled $971.4 million.The following notable components within Individual Income Tax combine for the net decrease:▪ Individual Income Tax refunds issued (net of voided checks) were up $292.2 million, or 69.8 percent
▪ Individual Withholding payments increased by $218.9 million, or 18.4 percent, compared to FY 2020
▪ Individual Income Tax Return payments were up $22.2 million, or 32.7 percent, over last year
▪ All other Individual Tax categories, including Estimated Tax payments, were up a combined $11.4 million▪Individual Income Tax refunds issued (net of voided checks) were up $292.2 million, or 69.8 percent ▪Individual Withholding payments increased by $218.9 million, or 18.4 percent, compared to FY 2020 ▪Individual Income Tax Return payments were up $22.2 million, or 32.7 percent, over last year ▪All other Individual Tax categories, including Estimated Tax payments, were up a combined $11.4 million
Sales and Use Tax: Gross Sales and Use Tax collections totaled more than $1.05 billion during the month, for an increase of $118.3 million, or 12.6 percent, over March 2020. Net Sales and Use Tax increased by $75.6 million, or 16.5 percent, compared to the previous fiscal year when net sales tax totaled $457 million. The adjusted Sales Tax distribution to local governments totaled $512.9 million for an increase of $45.1 million, or 9.6 percent, compared to FY 2020. Lastly, Sales Tax Refunds fell by roughly $2.4 million, or -21.2 percent, compared to last year.
Corporate Income Tax: Corporate Income Tax collections increased by $23.7 million, or 21.6 percent, over last year to a total of nearly $133.9 million for the month.The following notable components within Corporate Income Tax make up the net increase:▪ Corporate Income Tax refunds issued (net of voids) were down roughly $22.9 million, or -63.1 percent
▪ Corporate Income Tax Estimated payments increased $12.7 million, or 21.3 percent, over last year
▪ All other Corporate Tax types, including Tax Return payments, were down a combined $11.9 million▪Corporate Income Tax refunds issued (net of voids) were down roughly $22.9 million, or -63.1 percent ▪Corporate Income Tax Estimated payments increased $12.7 million, or 21.3 percent, over last year ▪All other Corporate Tax types, including Tax Return payments, were down a combined $11.9 million
Motor Fuel Taxes: Motor Fuel Tax collections fell by roughly $2.3 million, or -1.6 percent, compared to FY 2020.
Motor Vehicle – Tag & Title Fees: Motor Vehicle Tag & Title Fees increased by $4.3 million, or 12.7 percent, while Title Ad Valorem Tax (TAVT) collections increased by roughly $7.8 million, or 15.7 percent, over last year.