Georgia is starting to feel the pinch of the housing slump that has sparked talk of state budget cuts across the country.
Overall tax collections in Georgia fell slightly —- $2.3 million, or
less than 1 percent, in September —- compared with the same month the
year before. Sales tax collections, which are tied to consumer
spending, dropped $47.6 million, or more than 10 percent, from
September 2006.
"A big chunk of that is related to the housing downturn," said
Kenneth Heaghney, the state's fiscal economist. "The lumber sector is
down, building materials are down, and the home furnishing sector is
down. That seems to be taking a chunk out of ... the sales tax numbers."