Tax revenues in May rose by a whopping 16 percent over the same period a year ago to $1.7 billion, according to state money managers. The growth was driven in large part by a strong surge in income tax collections. The only month where the state saw a larger revenue rise was in January, when tax receipts grew by 15.5 percent over the year before to a record-setting $1.8 billion.

Even Gov. Sonny Perdue said he found the May results ``surprising.''

``This is solid economic growth for Georgia, which I think puts us in good stead for the future,'' Perdue said.

For the year, revenues are up 9.8 percent, or $1.3 billion.

Officials said Georgia is on track to meet and probably exceed the 6 percent revenue growth that the state budget was based upon. The state's fiscal year ends June 30.

Although gasoline prices have been high, collection of state motor fuel taxes dropped in May by 6.4 percent, to $64.4 million from the prior year.

Sales and use taxes were up 13 percent in May, compared to a year ago, to $510 million.

State officials say they are particularly encouraged by the rise in income tax collections, which signals job growth in Georgia. There were 13,000 more tax returns filed than last year. Officials said it is the result of new people and corporations moving into the state as well as stepped up enforcement on tax deadbeats.

Individual income taxes make up 49 percent of state revenues. For the year, they are up $701 million, or 10.6 percent.

Corporate income tax revenue has risen by $175 million or 31.5 percent for the year. And motor fuel tax collections for the whole fiscal year are up 18.3 percent, despite a rollback of the state tax for a month last fall.

(Copyright 2006 by The Associated Press. All Rights Reserved.)