December’s state revenue receipts came in with flat overall numbers showing a gross 0 percent growth. Without gasoline taxes, which were negative, revenues totaled a 2.2 percent increase. Good news included personal income taxes, (approximately 50 percent of state revenues) which increased by 10.5 percent.

Sales taxes continued to be flat, actually totaling a -8.8 percent for the month.

Both excise and sales tax gasoline taxes were negative for the month totaling a -9.1 percent. Excise taxes (by the gallon) have consistently been negative all year and sales taxes from gasoline sales have been negative two of the last three months.

Corporate taxes showed a negative 15.3 percent but are consistent with the quarterly cycle in corporate collections of positive one month out of three.

Year to date receipts remain close to estimate
State revenues show an overall 4.6 percent growth rate (excluding motor fuel taxes) for the first six months of fiscal year 2008, which barely meets the revenue estimate of 3.76 percent. Personal income taxes have increased at a 5.9 percent rate with individual withholding tax collections up 6.3 percent and estimated tax payments up 12.9 percent.  

Sales taxes are marginally up for the year at a gain of 1.8 percent, but that total includes a $66 million one-time adjustment without which sales taxes would be negative for the year. Within commodity categories, food, apparel, general merchandise, home furnishings, miscellaneous services and utilities are all up but mostly in the 2-3 percent increase category. Negatives include automotive and manufacturing categories. These pale in comparison to totals a year ago when growth percentages ranged from 5 percent-20 percent.

Gasoline taxes are a net negative for the YTD at –2 percent. Corporate income taxes are up 15.6 percent for the year, a bright spot.

So at the midyear point, Georgia has taken in $8.64 billion with an increase of only $347.9 million or 4.2 percent
You have to look hard to find encouraging news in the current revenue figures. But in light of a great deal of negative reports on the economy, maybe Georgia’s is still generally positive — for now.
 
New reserve figures
Updated reserve figures are in and Georgia’s revenue shortfall reserve now totals $1.733 billion or excluding the midyear education adjustment, $1.544 billion. This net figure, 8.33 percent of revenues collected, is the highest since the years preceding the recession of 2001.   
 
Useful Web sites
Visit the Legislature’s home page at www.legis.state.ga.us