The Georgia State House on Thursday voted unanimously to pass a bill that will accelerate the tax cuts previously passed by the Georgia General Assembly in 2022 alongside bills aimed at lowering property taxes and increasing child tax credits.
HB 1015 will reduce the Georgia state income tax rate to 5.39 percent, effective retroactively to January 1, amending previous legislation that established a flat income tax in Georgia that would be set at 5.49 percent in 2024. Active legislation mandates the income tax rate be decreased by 10 basis points annually until it reaches 4.99 percent, which could be achieved in 2028 if the bill becomes law.
Governor Brian Kemp, in December 2023, promised Georgia Republicans would introduce legislation to “accelerate” the previous tax cuts achieved under his watch when he declared Georgia is “well-positioned to move the timeline up” and lower taxes more quickly.
After the bill passed with 165 votes in favor and zero against, House Speaker Jon Burns (R-Newington) told the press, “Cutting taxes and returning money to taxpayers continues to be a priority” that “will deliver significant relief to taxpayers across the state, put more money back into their pockets and continue to boost our economy.”
The Georgia House also passed two more bills related to tax on Thursday. These include HB 1019, which would double Georgia’s homestead property tax exemption from $2,000 to $4,000, and HB 1021, which would increase Georgia’s child income tax reduction from $3,000 to $4,000. Both bills also passed unanimously in the Georgia House.
When Kemp first announced plans to “accelerate” the tax cuts passed with HB 1437 in 2022, Lt. Governor Burt Jones (R-Newington) called it “a great step toward ultimately eliminating Georgia’s income tax, a top priority of mine.”
Jones, who is widely expected to mount a gubernatorial campaign as Kemp is term-limited and cannot seek reelection, campaigned for his current elected position with a promise to fight soaring inflation by decreasing state taxes.
Georgia remains flush with $11 billion in its cash reserves that can be used for any reason. The Peach State also boasts $5.4 billion in its rainy day fund, which is the legal maximum, an additional $2.1 billion in its lottery reserve fund, and last year purchased $10 million in Israeli bonds to support the country’s military campaign against Hamas leadership.
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Tom Pappert is the lead reporter for The Tennessee Star, and also reports for The Georgia Star News, The Virginia Star, and The Arizona Sun Times. Follow Tom on X/Twitter. Email tips to [email protected].
Photo “Brian Kemp” by Brian Kemp.
