Bill > HB880

This bill proposes significant changes to Georgia's income tax rate and Revenue Shortfall Reserve policy. Starting January 1, 2024, the state income tax rate will be set at 5.39 percent, with plans to gradually reduce it by 0.10 percent annually until reaching 3.99 percent (instead of the previously planned 4.99 percent). However, these annual reductions are contingent on specific economic conditions, including the Governor's revenue estimates being at least 3 percent higher than the previous year, net revenue collection being higher than the past three fiscal years, and the Revenue Shortfall Reserve containing sufficient funds to offset potential revenue decreases. The bill also modifies the Revenue Shortfall Reserve rules, increasing the maximum reserve limit from 15 percent to 50 percent of the previous fiscal year's net revenue and allowing any amount exceeding 25 percent to be used for tax relief. The Office of Planning and Budget will be responsible for monitoring these conditions and reporting findings to key legislative and executive bodies. These changes aim to provide potential tax relief while maintaining fiscal responsibility by linking tax rate reductions to the state's economic performance.

Budget and Finance

https://www.legis.ga.gov/legislation/71847