Georgia’s Starting to Make Multi-Billion Budget Surpluses a Trend
For the second year in a row, Georgia has collected more in general tax revenue than it expects to spend for the budget year ending June 30.
Tax collections for the month of June could add another $2.5 billion in revenue. Combined with $2 billion in general tax revenue, Georgia could see a total surplus of $4.5 billion, surpassing last year’s surplus of $3.7 billion.
Since Governor Brian Kemp already extended a temporary waiver on gas taxes through mid July, the budget surplus may go towards further reducing the state’s motor fuel tax. Democratic gubernatorial candidate Stacey Abrams has called on Kemp to suspend the state gas tax through the end of 2022.
But, in addition to the budget surplus, lawmakers are wary of revenue decreases. A change in Georgia’s income tax in 2024 to a flat tax of 5.49% could lead to the loss of $450 million in tax revenue.