IEC State Government News
Georgia’s Annual Budget expected to be over $21 billion for 2015
Gov. Nathan Deal announced today that Georgia's net tax collections for December totaled nearly $1.91 billion, an increase of $158 million, or 9 percent, compared to December 2013, when net collections totaled $1.75 billion. Year-to-date, net tax collections totaled $9.61 billion, which was an increase of nearly $517 million, or 5.7 percent, compared to the previous fiscal year, when net tax revenues totaled $9.09 billion after six months. Year-to-date gross tax revenues, before refunds and distributions to local governments, totaled $12.48 billion, which was an increase of $711 million, or 6 percent, compared to the year-to-date total of $11.77 billion as of December 2013.
The following changes within the following tax categories led to the overall net revenue increase in December:
Individual Income Tax: Individual Income Tax collections for December totaled approximately $1.09 billion, up from $958 million in December 2013, for an increase of $128.5 million, or 13.4 percent.
The following notable components within Individual Income Tax account for the net increase:
• Individual Income Tax Withholding payments were up $91.5 million, or 10.7 percent
• Individual Income Tax refunds issued (net of voided checks) were up $16.25 million, or 76.7 percent
• Individual Income Tax Estimated payments increased $56.5 million, or 65 percent, over December 2013
• All other Individual categories including Income Tax Return payments were down a combined $3.25 million
Sales and Use Tax: Gross Sales Tax collections for December increased $41.5 million, or 5.2 percent, compared to FY 2014. In addition, net Sales & Use Tax collections increased approximately $16.75 million, or 4 percent, over the previous year, when net Sales Tax totaled nearly $414.5 million. The adjusted distribution of sales tax to local and county governments totaled $397.5 million, which was an increase of $25.25 million compared to last year. Lastly, refunds of sales tax overpayments declined slightly by $0.5 million compared to last year.
Corporate Income Tax: Corporate Income Tax collections for December increased $33.85 million, or 22.1 percent, compared to last year, when net Corporate Tax revenues totaled approximately $153.5 million.
The following notable components within Corporate Income Tax make up the increase:
• Corporate Tax refund processing activity declined $14.85 million, or -54.1 percent
• Corporate Income Tax Return payments increased $21.25 million, or 131.7 percent
• All other Corporate Tax categories combined for a decrease of $2.25 million compared to FY 14
With action by the US Supreme Court agreeing to hear Florida’s case on the flows out of the ACF, Georgia’s Ag businesses and Industry may again be in the crosshairs of water conservation efforts. Atlanta’s thirst for water is having a major impact on water flow that feeds the oyster beds and fisheries of the northern Gulf Coast. Georgia had sought to dismiss the suit, filed in October 2013, but Judd Turner EPD Director will be heading up the team to defend Georgia’s water rights.
Motor Fuel Tax/Transportation Investment
Following a series of Transportation Committee meetings across the state and growing pressure on funding transportation projects, the gas tax/road tax issue will be one of the top issues. Lawmakers have signaled that any proposed gas tax hike would not be put on the ballot. The final report of The Joint Study Committee On Critical Transportation Infrastructure Funding offered their report over the Christmas break - click here to read the 23 page report. Transportation funding is of critical importance to our economic growth. The report estimates that at least $1.0 - $1.5 billion in new funds are needed to get the state current on road repairs and maintenance.