Georgia state tax collections finish more than $2 billion ahead of projections, buoying surplus

ATLANTA (AP) — Georgia’s tax collections ran more than $2 billion ahead of projections for the budget year that ended June 30, even though tax revenues fell slightly.

That means even though Republican Gov. Brian Kemp and lawmakers decided earlier this year to spend part of the state’s surplus, that cash cushion will be larger than expected when the state closes the books on the 2024 budget year in coming months. It was last estimated at $10.7 billion.

It also means that Kemp’s administration for the fourth year significantly underestimated how much Georgia would collect in taxes, meaning money is held in surplus instead of being used to boost spending on government services or cut taxes.

The governor by law sets a ceiling on how much lawmakers can spend.

Garrison Douglas, a spokesperson for Kemp, said the surplus over projections is likely to be around $2.2 billion, according to a “very preliminary estimate.” However, surprises can appear as accountants finalize the state’s year-end financial returns. Some taxes collected by other agencies besides the state Department of Revenue weren’t available Friday.

Overall collections fell 0.5% the 2023 budget year, which suggests Georgia’s economy may be cooling. Income tax collections, the state’s largest source of revenue, were down more than 5%, although some of that decrease is likely due to income tax cuts that began on Jan. 1.

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