State posts positive tax collection figures in November

Georgia’s revenue picture has improved for a sixth straight month, with encouraging signs popping up just before Christmas, new state records show.

Gov. Sonny Perdue’s office released figures Monday that show November revenue collections were more than $1.26 billion, compared with $1.18 billion in November 2009, an increase of 6.7 percent.

For the 2011 fiscal year, which began July 1, collections are up by 7.4 percent over the same five months of last year. The state budget for fiscal 2011 was predicated on a 4 percent growth in tax collections.

“All in all, it is generally good news,” state fiscal economist Kenneth Heaghney said. “Obviously, we still have a very long way to get back to where we were at the peak prior to this recession. But at least we are moving forward and generally improving. The basic report is very positive. But the issue is: Can we sustain that for the full fiscal year?”

Corporate income taxes posted exceptional figures, growing by $4.1 million, or a whopping 175.9 percent. Individual income taxes also grew substantially, increasing 6.5 percent or $40.1 million. Sales tax collections boosted the growth as November saw the state bring in $5.4 million more in sales and use taxes than a year ago.

Below is a closer look at November’s revenue report.

Individual income tax collections

November 2010: $661.8 million

November 2009: $621.7 million

Difference: 6.5 percent

Corporate income tax collections

November 2010: $6.4 million

November 2009: $2.3 million

Difference: 175.9 percent

Sales and use tax collections

November 2010: $394.6 million

November 2009: $389.2 million

Difference: 1.4 percent

Fiscal year to date (July 1-Nov. 30)

Overall tax collections: $6.2 billion

Same period a year ago: $5.8 billion

Difference: 7.4 percent

8 comments Add your comment

Jim S.

December 13th, 2010
5:45 pm

Pretty good economic news. The state has shown signs of recovery and since the election is over and one side doesn’t have an interest in poor mouthing the recovery as much (both sides do this when it suits their purposes), maybe we’ll see an even greater uptick. Whether you want lower taxes or not, the increase in revenue is an indicator of economic expansion.

Big Dog 98

December 13th, 2010
6:21 pm

Let’s hope the good news keep coming.
Hopefully, the worst is over.

Rationaled

December 13th, 2010
6:33 pm

Whoopee, more income…oh wait, we just wasted $30 million on a crooked land deal. We have the time and resources to save the woods but hey, all you state workers, get ready for more layoffs and furloughs!

Georgia Citizen

December 13th, 2010
7:00 pm

Ah, but alas, the incoming governor and legislature are preparing to further gut education in Georgia nonetheless.

Red

December 13th, 2010
9:47 pm

More revenue! Means bigger government! Somehow I’m willing to bet pet projects and crooked land deals benefiting those with ties to office will still go on if not increase. The Tea Party would be smart to start locally on cutting government and taxes. Amazing how the rhetoric of letting people keep more of their money is just that – rhetoric.

Chad

December 14th, 2010
7:08 am

It is no surprise to me that one article on AJC describes how state revenues have risen many months over, yet another one points to how state budget deficits continue to increase. Hopefully I am not the only one that can see this wacky correlation. Increased taxes will only lead to a bigger, more out of control, government. The only answer is painful, yet simple: cut spending NOW!!!

Thanks

Frank

December 14th, 2010
8:42 am

Shortage of revenue in state coffer would be greater if not for increase of fees this year. This “increase of fees” simply amounts to what has been dubbed “back door” tax increases.

I would like to see a news article that exposes these fee increases that are “bleeding us white” and shoring up the state budget during this protracted “Great Recession”.

DFCSVeteran

December 15th, 2010
12:34 pm

So, let me see. The current budget was predicated upon a 4% growth in revenues. However, at the beginning of the fiscal year the Governor ordered all departments and agencies to submit a revised budget with a 4% reduction because they feared a shortfall in revenues. However, the revenues have grown by 7%. Why hasn’t the governor restored the budgets as passed by the legislature? Why haven’t furloughs been rescinded? Where is that extra money going since income is basically 11% more than budgeted expenditures? This governor is as slick as they come.