Monday, June 12, 2017
NOTES FROM THE SENATE, JUNE 12, 2017
MAY REVENUES BRING ENCOURAGING YEAR-END NEWS
With Individual Income Tax receipts increasing 17.6%, May's state revenues shone a sunny overall increase of 10.3% in a month that has helped the state start to catch up on rainfall. Total revenues of $1.7 billion produced a gain of $161.5 million for the month. Individual Income Tax refunds were down $51.3 million for the month, a good start. Withholding Taxes were up 10.1%, a positive reflecting payroll increases.
Net Sales Tax growth continued consistent, up 3.5% for the month. Corporate income taxes were also positive for the month, up 23.2%. Title Ad Valorem tax fees were negative at -3.1%. Tobacco tax collections were up 10.7%, but alcoholic beverages were down -1.9%.
Motor Fuel Taxes were up slightly at 1.1% on revenues of $146.8 million for the month. Highway Impact Fees were down minus -18.5% and Hotel/Motel Fees were flat at 0.1%. Altogether, the transportation related taxes and fees were up a total of $1.399 million for the month.
YEAR-TO-DATE 4.7% GROWTH CLOSING ON AN EXCELLENT YEAR
Unless there is a huge glut of unpaid refunds lurking out there, FY 2017, closing at the end of June, will see another excellent year of growth for the state. The eleven month revenue total is just shy of $20 billion, at $19.787 billion. Overall revenue collections are running some $880.3 million ahead of the same 11 months a year ago. That 4.7% growth is very healthy for the state.
Individual Income Taxes have come in at a very respectable 5.4% rate with corporate tax collections still negative at -3.0%.
Net Sales Taxes are growing at a robust 4.4%. Title Ad Valorem Taxes show a healthy growth of $51.8 million or 6.1% YTD. Tobacco and Alcoholic Tax collections are both positive at 0.1% and 1.3% respectively.
Motor Fuel Tax collections are up $84.6 million or 5.6% with Impact Fees up 11.1% and Hotel/Motel fees up 15.1% for the 11 months. Altogether, HB 170 taxes and fees are up $106.6 million year-to-date.
REVENUES EXCEED BUDGET BY $276 MILLION
With a month to go in FY 2017, Georgia's revenues exceed the budget appropriated by about $276.3 million. Any way you figure it, a 12 month trailing average or the 11 months of this fiscal year, state revenues are growing at a healthy 4.7% rate. And this year, the growth attributed to HB 170, the Transportation tax bill, has slowed and makes up only about .5% of the 4.7% growth...so overall non-transportation tax revenues are growing at a healthy 4.2% or so.
Georgia is actually pretty close to the large net revenue growth months of a year ago as transportation taxes and fee growth have slowed month over month. The overall net growth rate in Georgia of about 4.2% is excellent and an indication of the healthy Georgia economy.
Full transcripts of bills may be found at http://www.legis.ga.gov/en-US/default.aspx . Simply type the bill number into the box at the top left-hand corner of the screen and specify if it is in the House or the Senate. As always, I welcome any questions you may have.