Georgia tax revenue fell for the second consecutive month after rising earlier in the year.
Net tax collections fell $89.7 million, or 3.4%, in October over the same period last year.
It’s the second consecutive month that tax revenue has fallen compared with last year. For the fiscal year that began July 1, net tax collections are down $61.1 million, or 0.6%.
The Georgia Department of Revenue said Friday that last month’s revenue decrease was partly attributable to Hurricane Helene-related income tax filing and payment deadline extensions for Georgia individuals and businesses announced earlier this month. Income taxes are the state’s largest source of revenue.
Sales and use taxes and motor fuel tax collections increased in October over last year.
Gov. Brian Kemp and budget writers in the General Assembly monitor revenue closely. Under state law, they cannot budget more than Kemp estimates the state will collect in taxes in the coming year.
In July, Kemp’s budget director instructed state agencies to submit budget requests for next year without spending increases. Enrollment-based programs — such as K-12 education, colleges and public health care programs — will be able to seek increases.
The governor is expected to release his proposed budget in January. Despite flagging tax revenue, the state has amassed an $11 billion unallocated cash surplus and a separate $5.5 billion rainy day fund in recent years.
Kemp recently proposed a $1 billion tax refund that — if approved by the General Assembly — Georgians would collect when they file taxes next year.
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