August Sales Tax Overview
Georgia’s August gross sales and use collections grew +5.6% YoY. 6 industries posted negative growth this month. The top 3 industries that experienced the most sales tax growth YoY this month are other retail (+24.68%), auto (+19.69%), and other services (+8.26%).
The table below shows how the 5 largest sales tax-generating counties, which contributed 41.29% of all sales tax in August, performed.
|Chatham||$ 6,637,275.24||$ 7,083,002.41||-6.29%|
The next table shows Georgia’s top 5 and bottom 5 counties in terms of sales tax growth (loss). The 10 counties account for 4.66% of Georgia’s total sales tax revenue generation in August 2020.
|Burke||$ 1,149,609.12||$ 466,300.78||146.54%|
|Taylor||$ 96,111.77||$ 63,119.34||52.27%|
|Glascock||$ 21,412.94||$ 14,086.32||52.01%|
|Chattaho||$ 104,298.39||$ 72,183.52||44.49%|
|Appling||$ 351,811.76||$ 250,328.20||40.54%|
|Berrien||$ 76,156.18||$ 127,281.18||-40.17%|
|Heard||$ 259,798.69||$ 420,348.55||-38.19%|
|Clay||$ 14,328.77||$ 20,176.86||-28.98%|
|Bibb||$ 2,191,624.27||$ 2,953,857.98||-25.80%|
|Clayton||$ 3,412,430.32||$ 4,590,562.31||-25.66%|
Source: Georgia Department of Revenue Sales Tax Commodity Report
Other Tax Collection Revenue
Individual Income Tax: August collections increased by 10.3% (+$90.2 million) with a total sum of ~$970.3 million.
- Income tax collections had been bolstered by tax withholding on unemployment checks (withholding collections totaled to ~$120 million a month from the unemployed, versus the typical $1 million to $5 million)
Corporate Income Tax: August collections increased by 115.9% (+$6.1 million) from $5.3 in 2019 to $11.4 in 2020. The large jump is due to:
- Corporate refunds issued down by 29.1% (-$5.8 million)
- Corporate income estimated tax payments up by 112.2% (+$5.1 million)
- All other corporate tax categories up a combined $4.8 million
Motor Fuel Taxes: August collections decreased by 2.5% (-$3.9 million) totaling to $156.1 million.
Motor Vehicle – Tag & Title Fees: August collections decreased by 15.8% (-$5.7 million). Title ad Valorem Tax (TAVT) declined by -15.2% (-$10.2 million).
Source: Georgia Department of Revenue Press Releases
Georgia Select Policy Changes
For fiscal 2022, which begins next July 1, Kemp is asking for no new reductions. The current fiscal year has seen a finalized budget cut of about 10% ($2.2 billion) with $950 million being reduced basic aid for school systems.
August Sales Tax Report Graphs
Since July’s spike in sales tax generation, growth declined in manufacturing (+11.98% in July to -11.33% in August YoY), misc services (+4.08% in July to -7.75% in August YoY), and construction (+18.18% in July to +3.12% in August YoY). Accommodation and utilities, although posting negative growth, continue to show signs of a slow and steady recovery, unlike other industries.
The reopening of the economy has brought about sales tax growth for the past 2 months, however, with a large increase in COVID-19 positive cases. As of August 31st, there have been 3,752 COVID-19 related deaths in Georgia.
Chart Source: Georgia Department of Revenue Sales Tax Commodity Report
August Georgia Sales Tax Report: Good And Bad News
Despite COVID-19, job creation was 1.5 times higher in July 2020 and August 2020 compared to last last year
Georgia has finalized the FY 2021 budget cut (-$2.2 billion)