The last month of fiscal year 2013 ended in positive territory as the state began to wind up the refund season and still had a positive month in June. Overall, revenues were $1.579 billion, an increase of $36.7 million for the month or up 2.4 percent.
FY2013 totals are up some $951.4 million for the year, an increase of 5.9 percent and meets budget projections. There will be more later in the column.
June individual income taxes totaled $791.3 million for an increase of $10.5 million, or 1.4 percent.
Net sales taxes totaled $414.5 million for June with a decrease of $14.4 million. With the new title fee replacing sales taxes March 1, it will take another nine months or so to see actual comparisons. But for now, if you add in the increase in title fees for June, $58.0 million, between the two they would show a positive gain of $43.6 million or an increase of .1 percent for the month.
Motor fuel taxes continued to slip showing a net decrease for the month of $7.3 million or -8.4 percent. Sales taxes were down $4.2 million and excise taxes were down another $3.0 million.
Corporate income taxes were steady at positive $2.7 million. Tobacco tax collections were down 6.9 percent and alcoholic beverage taxes were slightly up at 2.4 percent.
The aforementioned title fee showed revenues of $87.0 million for an increase of some $58.0 million.
Fiscal year 2013 numbers — state revenues up more than $900 million
Compared to a year ago, the increase this fiscal year totals $951.4 million. A year ago, the increase was only $742.1 million, so there is definite improvement.
Total state revenues totaled $17.0 billion and the increase of $951.4 million is a 5.9 percent increase.
Individual income taxes show a grand total of $8.753 billion for an increase of $611.0 million, an increase of 7.5 percent.
Net state sales taxes show a total of $5.324 billion but are negative for the year at -$6.2 billion, or -0.1 percent. About a fourth of the year was affected by the replacement of the sales tax on automobile purchases with a title fee.
Motor fuel taxes showed $975.4 million for the year against $1.0 billion a year ago for a net decrease of $29.1 million or -2.9 percent. Fuel sales taxes were down $25.8 million and excise taxes down $3.2 million.
Corporate income taxes were a real bright spot this year showing a total of $797.2 million for the year with an increase of some $207.3 million or a gain of 35.1 percent.
Of the entire gain for the year of $951.4 million, corporate income taxes represented over 21 percent of the total.
Tobacco taxes were down 6.9 percent for the year and alcoholic beverages were up 0.8 percent.
The title fee, now being charged on autos in place of sales taxes, totaled $453.3 million for the year, an increase of $145.1 million, which would have surely gone into the sales tax numbers.
The change in the title fee, the manufacturing exemption and the agricultural exemption is distorting the collection in sales taxes. These taxes changed and so when comparing FY13 compared to FY12, it is difficult to tell what is happening.
The governor’s revenue estimate projected a 1.5 percent decline in sales tax in FY13 compared to FY12 which is approximately $78 million.
Based on actual collections, it appears the state only dropped $6 million or 0.1 percent. This less-than-expected drop means that the economy improved more than expected, and that the tax cuts did not impact revenues as much as expected (or there might be delayed impact) or a combination of the above.
The Department of Revenue does not classify sales tax revenue at a level low enough to figure which is which. But we hope that collections are better than expected because the economy is indeed improving.
I may be reached at
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E-mail at Jack.Hill@senate.ga.gov
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