ATLANTA – Georgia tax collections fell in November for the second consecutive month, another sign that state tax revenues are failing to keep pace with projections.
The state Department of Revenue brought in almost $1.81 billion in net tax receipts last month, a decrease of $22.4 million, or 1.2%, from November 2018.
Individual income taxes were down 3.4%, a decline partially offset by a 6.9% increase in net sales tax collections.
Corporate income tax revenues, typically more volatile than individual income taxes, plummeted by 85.1% in November, due to a large increase in refunds issued by the state coupled with a large decline in payments.
November saw the third month of declining state revenues in five months since fiscal year 2020 began in July. Prompted by a sluggish end to fiscal 2019, Gov. Brian Kemp ordered state agencies in August to reduce spending by 4% during the remainder of the current fiscal year and by 6% in fiscal 2021.
Worried Georgia lawmakers formed a special committee last summer with the dual task of looking for ways to grow Georgia’s economy by attracting more businesses and finding new sources of tax revenue for the state. The Special Committee on Economic Growth will hold its next meeting on Tuesday in Columbus.
Kemp will deliver his budget recommendations to the General Assembly in January.