HB111: HB111 Income tax; reduce rate of tax

25 LC 59 0028-EC/AP House Bill 111 (AS PASSED HOUSE AND SENATE) By: Representatives Hong of the 103rd, Gambill of the 15th, McDonald III of the 26th, Wade of the 9th, Williamson of the 112th, and others A BILL TO BE ENTITLED AN ACT To amend Article 2 of Chapter 7 of Title 48 of the Official Cod e of Georgia Annotated,1 relating to the imposition, rate, computation, exemptions, and credits relative to income2 taxes, so as to reduce the rate of the tax; to provide for rela ted matters; to provide for an3 effective date and applicability; to repeal conflicting laws; and for other purposes.4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 SECTION 1.6 Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the7 imposition, rate, computation, exemptions, and credits relative to income taxes, is amended8 by revising subsection (a.1) of Code Section 48-7-20, relating to individual tax rates, credit9 for withholding and other payments, and applicability to estates and trusts, as follows:10 "(a.1)(1) On and after January 1, 2024 2025, the tax imposed pursuant to subsection (a)11 of this Code section shall be 5.39 5.19 percent for taxable years beginning on or after12 January 1, 2024 2025; provided, however, that such rate shall be reduced by 0.10 percent13 annually beginning on January 1, 2025 2026, until the rate reaches 4.99 percent, provided14 that such annual reductions in the tax rate shall be subject to del ays as provided in15 paragraph (2) of this subsection.16 H. B. 111 - 1 - 25 LC 59 0028-EC/AP (2) Each prospective annual reduction in the tax rate that wou ld otherwise occur as17 provided in paragraph (1) of this subsection shall be delayed by one year for each year18 that any of the following are true as of December 1:19 (A) The Governor's revenue estimate for the succeeding fiscal year is not at least 320 percent above the Governor's revenue estimate for the present fiscal year;21 (B) The prior fiscal year's net revenue collection was not hig her than each of the22 preceding three fiscal years' net tax revenue collection; or23 (C) The Revenue Shortfall Reserve provided for in Code Section 45-12-93 does not24 contain a sum that exceeds the amount of the decrease in state revenue projected to25 occur as a result of the prospective reduction in the tax rates set to occur the following26 year.27 (3) The Office of Planning and Budget shall make the determina tions necessary to28 implement the provisions of paragraph (2) of this subsection an d shall report its29 determinations by December 1 of each year to the department, the Speaker of the House30 of Representatives, the President of the Senate, and the chairp ersons of the House31 Appropriations Committee, the House Ways and Means Committee, t he Senate32 Appropriations Committee, and the Senate Finance Committee. This paragraph shall not33 be applicable after the final reduction to the rate of 4.99 percent occurs."34 SECTION 2.35 This Act shall become effective on July 1, 2025, and shall appl y to all taxable years36 beginning on or after January 1, 2025.37 SECTION 3.38 All laws and parts of laws in conflict with this Act are repealed.39 H. B. 111 - 2 -