State tax collections slipped significantly in April. Gov. Brian Kemp’s office said Tuesday that revenues decreased by more than $800 million, or about 16%, compared to April of last year.
It’s the second straight month of revenue decline, reversing a boom that started with the end of COVID-19 restrictions in 2020.
Much of the slip is attributed to first-year implementation of a new law that changes the way certain corporations file their tax returns. House Bill 149, passed in 2021, permits certain corporations and partnerships to make entity-level tax elections on behalf of their individual partners, beginning with tax year 2022 returns filed in 2023.
The impact of HB 149 is also reflected in an increase in corporate income tax revenue throughout this fiscal year.
Individual income tax collections decreased by about $1.02 billion, or 32.4%. The total personal income tax collections for 2022 were $2.14 billion compared to last year when income tax collections totaled $3.16 billion.
The governor’s office said that the decrease in individual income tax is made up of several components. Individual income tax refunds issued were down 37.9%, but individual withholding payments increased by $84.2 million, or 7.2%, compared to FY 2022. Individual income tax return payments were down about 49.4% from last year, and all other individual tax categories, including non-resident payments, were down a combined $281.3 million.
Corporate income tax collections were up $33.2 million, or 4.7%, from April 2022. Sales tax, motor fuel taxes, and motor vehicle tag tax revenue also increased.
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This article appears on Now Habersham in partnership with GPB News
