BRADENTON, Fla. — Georgia Gov. Nathan Deal said Monday that net state revenue collections in July totalled $1.41 billion for an increase of $88.5 million or 6.7% compared to July 2012.

In July, the first month of fiscal 2014, the Peach State's individual income tax collections totaled $758.25 million, an increase of $60.25 million or 8.6% over July 2012.

Corporate income tax collections decreased 21.8%, and were down $4 million compared to last year.

The triple-A-rated state saw net sales and use tax collections drop by 6.6% in July to $430 million compared to $460.25 million in July 2012.

The monthly sales tax distribution to local governments totaled $378.75 million, which was a decrease of 4.4%.

Offsetting the drop in sale tax revenues somewhat were motor vehicle tag and title fee collections. The motor vehicle fees came in at $83.5 million in July, which was $62.25 million higher than the previous year.

The large year-over-year increase is the result of new tax legislation that became effective March 1, state officials said.

The new law established an ad valorem tax on titles to replace the sales tax that was traditionally assessed on the purchase of a car.

"As a result, gross sales tax collections have been reduced while motor vehicle fees have increased an average of $50.75 million per month since the filing of March returns began in mid-April," officials said.

Due to the timing of collecting the new vehicle ad valorem tax, sale tax revenue collection appears to be grossly under-stated and motor vehicle fees over-stated relative to collections in fiscal year 2012, the Georgia Department of Revenue said in a summary.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.