The State of Georgia's net tax collections in May reached $2.69 billion, marking an increase of $224 million, or 9.1%, compared to May of fiscal year 2024, when collections were approximately $2.47 billion. This surge is largely attributed to Governor Kemp's hurricane-related tax filing deadline extension for tax year 2024 income tax returns. Many filers utilized this extension, making payments by the May 1 deadline, which resulted in a significant portion of both individual and corporate return payments being recorded in the May reporting cycle.

Year-to-date, net tax revenue amounted to $30.46 billion, an increase of $536.2 million. This growth was primarily driven by the collection of the state’s motor fuel excise tax, which had been suspended by Executive Order for two and a half months during fiscal year 2024. After adjusting for these year-over-year motor fuel tax changes, year-to-date net tax revenue collections for the period ending May 31 showed an increase of $64.8 million, or 0.2%.

Further details on May’s overall net tax revenue increase are explained by the changes within the following tax categories:

Individual Income Tax: Individual Income Tax collections totaled nearly $1.33 billion, an increase of $102.3 million, or 8.3%, compared to last year's $1.23 billion. Key components contributing to this net increase include: Individual Income Tax refunds issued (net of voided checks) increased by $57.9 million (38.7 percent); Individual Withholding payments declined by $38.1 million (3.2 percent) from the previous fiscal year; Individual Income Tax Return payments were up $162.5 million (142.9 percent) over last year; and all other Individual Tax categories, including Estimated payments, increased by a combined $35.8 million.

Sales and Use Tax: Gross Sales and Use Tax collections in May were approximately $1.6 billion, an increase of $74.2 million, or 4.9%, compared to fiscal year 2024. Net Sales and Use Tax rose by $37.5 million, or 5%, compared to last year's net sales tax of $746 million. The adjusted Sales Tax distribution to local governments totaled $809.4 million, an increase of $41.7 million, or 5.4%, while Sales Tax refunds decreased by $4.9 million compared to the previous fiscal year.

Corporate Income Tax: Corporate Income Tax collections for May totaled $121.2 million, representing an increase of $50.2 million, or 70.8%, compared to last year’s total of $70.9 million. The net increase within Corporate Income Tax is attributed to: Corporate Income Tax refunds issued (net of voids) declining by roughly $31.1 million (75.1%); Corporate Income Tax Return payments increasing by $30.7 million (98.5%) over May 2024; and all other Corporate Tax types, including Corporate Estimated payments, being down a combined $11.6 million.

Motor Fuel Taxes: Motor Fuel Tax collections increased by $5 million, or 2.6%, compared to fiscal year 2024.

Motor Vehicle - Tag & Title Fees: Motor Vehicle Tag & Title Fees increased by $1.4 million, or 4.2%, for the month, while Title Ad Valorem Tax (TAVT) collections increased by $6.3 million, or 8.3%, over May 2024.