Georgia State and Local Tax (SALT) Alerts

State and Local Tax Insights

Georgia State and Local Tax Alerts – August 2021

  • The Georgia Dept. of Revenue reports that Georgia’s June 2021 net tax collections totaled $2.50 billion. This total represents an increase of $563.1 million, or 29.1%, compared to June 2020 when net tax collections totaled nearly $1.94 billion. For fiscal year 2021, net tax collections totaled almost $26.90 billion, an increase approaching $3.20 billion, or 13.5%. For comparison, fiscal year 2020 final net tax revenues — adjusted as of Aug. 7, 2020, to include deferred fiscal year 2020-related tax deadline payments received in July of 2021 — totaled $23.70 billion.
  • The Georgia Dept. of Revenue is reporting that motor fuel tax collections were down $82.8 million, or 59.2%, compared to last year, when motor fuel tax collections totaled nearly $140 million. The significant reduction in the number of taxable motor fuel gallons sold was the result of a supply crunch caused by the May 7, 2021 cyberattack on critical fuel line infrastructure across the Southeast. Because of the severe fuel supply shortage, Governor Kemp directed the temporary suspension of the collection of the motor fuel excise tax on both gasoline and diesel for a period of roughly three weeks beginning May 10 and ending June 2.
  • According to a recent Georgia Dept. of Revenue report, the state collected nearly $1.30 billion in net individual income tax in the month of June. That’s an increase of $256.8 million, or 24.7%, compared to last June when net individual tax revenues totaled nearly $1.04 billion.
  • For the month of June, Georgia’s net corporate income tax collections totaled $325.8 million, an increase of $227.5 million, or 231.6%, over last year when net corporate tax revenues totaled $98.3 million. Of note, corporate income tax refunds (net of voids) were down $20.4 million, or 64.4%, from last June.
  • The Georgia Dept. of Revenue has issued guidance with respect to how long COVID-19-related expenses will qualify for the Film Tax Credit. For a production that began principal photography before Aug. 1, 2021, costs incurred during the COVID-19 shutdown qualify through Nov. 1, 2021, only if they’re due to the COVID-19 shutdown, not reimbursed by insurance and if the production continues filming in Georgia. For post-COVID-19 costs (after the production company returns to Georgia), the department has listed detailed cost categories and what’s allowed and to what extent. For more information, visit the Georgia Department of Revenue’s Coronavirus Tax Relief FAQs page and scroll down to the last question.
  • For the month of June, the Georgia Dept. of Revenue reports that motor vehicle tag and title fees increased by $1.4 million, or 4.6% over the same period in 2020. Title Ad Valorem Tax (TAVT) collections increased by roughly $24.6 million, or 56.3% over June 2020.
  • The IRS has announced that the August advance Child Tax Credit (CTC) payments have begun to reach eligible families. This second batch of advance monthly payments, worth about $15 billion, are reaching about 36 million families nationwide. In Georgia, the Census Household Pulse survey shows that advance CTC payments are helping families pay for food, rent and other basic household expenses. Specifically, the survey data shows the payments are helping put food on the table as food insecurity for these families fell nearly 7%, from 16.4% to 9.7%. The IRS is stressing that it’s not too late for low-income families to sign up for advance CTC payments. Contact us for more information.
  • The U.S. tax code provides a tax credit (of up to $7,500) to purchasers of qualified plug-in electric-drive passenger vehicles and light trucks. For a complete list of qualifying vehicles, visit the IRS’ IRC 30D page. If you purchase one of these vehicles, you’re eligible for an alternative fuel vehicle license plate. Eligible vehicles must be fueled solely by electricity, bi-fuel or dual fuel. Alternative fuel vehicle plates are subject to a one-time manufacturing fee of $25, an annual $20 registration fee and a $35 special tag fee. Such fees are in addition to the alternative fuel vehicle fee, if applicable, and any taxes. For more information, visit the IRS’ Alternative Fuel Vehicle License Plate – FAQ page.
  • Good news for Georgia residents! The Georgia Dept. of Revenue has announced that there will be no quarterly county tax rate changes effective Oct. 1, 2021.
  • The Georgia Dept. of Revenue recently posted July 2021 corporate income tax numbers. In addition to a decrease of $19.4 million compared to July 2020, the department broke the numbers down further: corporate income tax refunds issued (net of voids) were up more than 115% over July 2020 while corporate income tax estimated return payments were down more than 21% over July 2020.

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