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ATLANTA – Georgia’s net tax collections soared last month due to a large decrease in taxpayer refunds, the state Department of Revenue reported Wednesday.
The state agency brought in more than $1.93 billion in February, an increase of 42.9% over the $1.35 billion the state collected in February of last year.
Most of the increase was driven by individual income tax receipts, which rose to $1.06 billion, up 96.7% compared to February 2020.
Most of the increase was the result of a 77.5% drop-off in refunds issued last month because of a delay in processing both tax returns from 2020 and the resulting tax refunds until mid-February, a step the revenue department took to comply with new IRS guidelines.
Net sales taxes rose by 16.3% last month, while corporate income tax collections plummeted by 69%, a decrease due to a large drop in corporate tax payments coupled with a big increase in refunds.
The revenue agency warned that as the processing of tax refunds picks up during the next several months, the favorable impact the large increase in net tax collections that occurred in February had on the state’s coffers will go away.
