House Bill 1001
By: Representatives Wade of the 9th, Gambill of the 15th, Seabaugh of the 34th, Hong of the
103rd, Blackmon of the 146th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
relating to the imposition, rate, computation, exemptions, and credits relative to income
taxes, so as to reduce the rate of the tax; to provide for related matters; to provide for an
effective date and applicability; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the
imposition, rate, computation, exemptions, and credits relative to income taxes, is amended
by revising subsection (a.1) of Code Section 48-7-20, relating to individual tax rates, credit
for withholding and other payments, and applicability to estates and trusts, as follows:
"(a.1)(1) On and after January 1, <del>2025</del> <ins>2026,</ins> the tax imposed pursuant to subsection (a)
of this Code section shall be <del>5.19</del> <ins>4.99</ins> percent for taxable years beginning on or after
January 1, <del>2025</del> <ins>2026;</ins> <del>provided, however, that such rate shall be reduced by 0.10 percent
annually beginning on January 1, 2026, until the rate reaches 4.99 percent, provided that
such annual reductions in the tax rate shall be subject to delays as provided in
paragraph (2) of this subsection.
</del>
<del>(2) Each prospective annual reduction in the tax rate that would otherwise occur as
provided in paragraph (1) of this subsection shall be delayed by one year for each year
that any of the following are true as of December 1:
(A) The Governor's revenue estimate for the succeeding fiscal year is not at least 3
percent above the Governor's revenue estimate for the present fiscal year;
(B) The prior fiscal year's net revenue collection was not higher than each of the
preceding three fiscal years' net tax revenue collection; or
(C) The Revenue Shortfall Reserve provided for in Code Section 45-12-93 does not
contain a sum that exceeds the amount of the decrease in state revenue projected to
occur as a result of the prospective reduction in the tax rates set to occur the following
year.
(3) The Office of Planning and Budget shall make the determinations necessary to
implement the provisions of paragraph (2) of this subsection and shall report its
determinations by December 1 of each year to the department, the Speaker of the House
of Representatives, the President of the Senate, and the chairpersons of the House
Appropriations Committee, the House Ways and Means Committee, the Senate
Appropriations Committee, and the Senate Finance Committee. This paragraph shall not
be applicable after the final reduction to the rate of 4.99 percent occurs."
</del> SECTION 2.
This Act shall become effective on July 1, 2026, and shall apply to all taxable years
beginning on or after January 1, 2026.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.