Georgia tax collections last month were down for the third month in a row, the state Department of Revenue reported Friday.
The state brought in $2.49 billion in tax revenue in May, a decrease of $205.7 million, or 7.6 %, compared to May of last year. However, year-to-date net tax receipts remained up slightly, by 0.2%, over the first 11 months of fiscal 2023.
The drop-off in tax collections last month was largely due to a 23.4% decrease in individual income taxes, driven primarily by a huge 119.3% increase in refunds issued combined with a 63.8% reduction in payments.
Net sales tax receipts actually rose 2.2% in May compared to May of last year.
Corporate income taxes also increased by 38.6% last month, with refunds down and payments up.
The state’s chief economist, Jeffery Dorfman, predicted in January that state tax revenues were likely to drop sharply this year because last year’s huge increase in capital gains tax payments was unlikely to be repeated. However, the state still is expected to finish the fiscal year at the end of this month with a healthy budget surplus built up during the last several years.