Bill > HB111

This bill modifies Georgia's income tax rate structure, reducing the state income tax rate from 5.39% to 5.19% starting January 1, 2025, with a plan to further decrease the rate by 0.10% annually until it reaches 4.99%. However, these annual reductions are contingent upon specific economic conditions being met, which will be evaluated by the Office of Planning and Budget each year by December 1. The conditions for proceeding with tax rate reductions include: the Governor's revenue estimate being at least 3% higher than the previous year, net revenue collection being higher than the preceding three fiscal years, and the Revenue Shortfall Reserve having sufficient funds to offset projected revenue decreases. If any of these conditions are not met, the subsequent tax rate reduction will be delayed by one year. The Office of Planning and Budget is required to report its determinations to various state government entities, and these evaluations will continue until the tax rate reaches 4.99%. The bill becomes effective on July 1, 2025, and applies to all taxable years beginning on or after January 1, 2025.

Budget and Finance

https://www.legis.ga.gov/legislation/69464