ATLANTA - Georgia lawmakers got a sobering economic snapshot just days before they return to the state Capitol for the 2008 legislative session.
Tax collections slowed for the month of December, dragged down by a steep decline in sales tax revenue. Sales tax collections plunged 8.8 percent from the same month the year before, signaling weak holiday sales.
With the state now halfway through the fiscal year, collections are up 4.2 percent, state money managers reported on Friday. That's slower than the last fiscal year's growth of 7.5 percent.
The news comes as state lawmakers return to the Capitol and prepare to dive into budget negotiations. It could put a damper on those looking to slash taxes and fund pricey pet projects.
Georgia's woes are not unique. With worries mounting that the nation is teetering on the brink of a recession, Democrats in Congress are considering a stimulus package and President Bush has appeared increasingly open to the idea.
In Georgia, income tax collections rose 10.5 percent for the month of December while corporate income taxes dropped 15.3 percent. State revenue officials said a $30 million tax assessment payment from one filer skewed the results.
Overall, tax collections for the month inched up just $470,000 above those in December 2006.
Looking at the fiscal year so far, income tax revenues rose 5.9 percent and corporate income taxes rose 15.6 percent. Sales tax revenues for the year are gloomy, climbing just 1.8 percent.
The state's fiscal year runs from July 1 to June 30.
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On The Net:
Georgia Department of Revenue: http://dor.georgia.gov/
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October 13th, 2024
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