State Tax Revenues Drop by Double Digits

Dave Williams

Monday, April 15th, 2024

Capitol Beat is a nonprofit news service operated by the Georgia Press Educational Foundation that provides coverage of state government to newspapers throughout Georgia. For more information visit

Georgia tax collections continued their downward slide last month, declining by 12.6% compared to March of last year, the state Department of Revenue reported Friday.

Year-to-date tax receipts were more encouraging, with revenues down a slight 0.5% compared to the first nine months of the last fiscal year.

However, that’s only because the state has resumed collecting taxes on gasoline and other motor fuels, a tax Gov. Brian Kemp suspended during most of last year. Not counting those revenues, state tax collections actually fell 4.3% during the first nine months of fiscal 2024.

Individual income taxes declined by 16.1% in March compared to the same month a year ago, in part because Kemp and the General Assembly cut the state’s income tax rates effective Jan. 1.

Net sales tax receipts also fell by 4.5% last month compared to March of last year. Corporate income tax collections dropped by 28.3%, as refunds issued by the revenue agency rose by 88% while payments were down by 91.8%.

Despite the slowdown in tax revenues, which the governor’s Office of Planning and Budget expected, Georgia lawmakers adopted a record $37.9 billion midyear budget in February that includes $5.5 billion in new spending.

A month later, the legislature approved a $36.1 billion spending plan for fiscal 2025, which takes effect in July. It includes 4% cost-of-living raises for most state and university system employees, with an additional $3,000 for those in state agencies hit hard by turnover, including law enforcement and welfare workers.

The largesse stems from a $16 billion budget surplus the state has built up during the last three years.