State Revenues Up For Third Straight Month.

Here’s hoping the economy is turning around.

The biggest improvement in August came from one of the most important sources: individual income taxes, which were up 24 percent over August 2009, a difference of more than $120 million.

Gross sales tax collections were also up 3.3 percent, but corporate income taxes actually fell by 158 percent to the point the state refunded more money to businesses than it took in.

Other gains were made in tobacco taxes, up 12.4 percent, and motor fuel taxes, which were up 22 percent.

The news is good, too, for the fiscal year, where tax collections are up 8.6 percent over the same period last year.The state budget for fiscal 2011, which began July 1, is predicated on a 4 percent growth in tax collections.

4 comments

  1. Dave Bearse says:

    It’s my recollection the Department of Revenue was understaffed in 2009, leading to refund delays, including delays to the extent that some refunds included interest payments.

    If that recollection is correct, August 2009 net income tax revenue was especially low because of much higher refunds, causing the 24% Aug 2010 versus Aug 2009 increase to be artificial / misleading.

    • B Balz says:

      Gladly, the gross number is up and Mr. Bearse is correct. The increase is due to fewer refunds, rather than an increase in gross receipts.

      But ‘up’ is still up !!!

      When the mega-BMW dealership overlooking I285 starts parking their new cars side by side, instead of end to end, we will have turned the corner….

  2. John Konop says:

    This is also a good sign! The key number to monitor if we hit bottom and this is a sustainable trend is the number of bankruptcies for business in the first quarter, in general many businesses will hang on for the Christmas season and will give up the first two months of a year if they cannot make it. Obviously this is a major driver via jobs…..

    FROM AJC

    Significantly fewer metro Atlanta small businesses filed for bankruptcy in the second quarter, according to a report Thursday from Equifax.

    Metro filings dropped to 275 during the second quarter, down 35.6 percent compared to a year ago. It was the biggest drop among the top 15 markets with the most business bankruptcies.

    Thirteen of the top 15 U.S. cities for bankruptcies reported improvements. But the fundamentals of these markets remain weak, according to Equifax, the Atlanta-based credit rating company.

    Nationally, the rate of small business bankruptcies through the first six months of 2010 was flat compared to last year. Atlanta’s rate slowed……

    http://www.ajc.com/business/small-business-bankruptcies-in-610468.html

  3. chefdavid says:

    So does that mean 12.4% more people are smoking or that 12.4 just have more free time on there hands from no work so they are smoking 12.4% more. There was a sales tax holiday in 2009 but not in 2010 would that make a difference? I am very hopeful things are turning around I just don’t believe by the number of pages of classified ads in the Sunday paper. When they start getting thicker then you know things are turning around.

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