Georgia CommonsHB 375: Income tax; exclude overtime compensation
Introduced version, the latest LegiScan holds · Last action February 12, 2025 · Introduced
The text as LegiScan holds it, read from the PDF the legislature publishes with its margin line numbers, running heads, and page footers removed. Line breaks are joined into paragraphs here; no word is changed.
Underlined words are what the bill adds to current law and struck-through words are what it removes, as the printed bill shows them.
House Bill 375
By: Representatives Smith of the 18th, Tarvin of the 2nd, Powell of the 33rd, Momtahan of the 17th, Gunter of the 8th, 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 for state income tax, so as to exclude overtime compensation from taxation; to provide for reporting by employers; to provide for rules and regulations; to provide for a definition; 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 for state income tax, is amended in subsection (a) of Code Section 48-7-27, relating to the computation of taxable net income, by deleting "and" at the end of paragraph (14), by replacing the period at the end of paragraph (15) with "; and", and by adding a new paragraph to read as follows: "(16)(A) For all taxable years beginning on or after January 1, 2026, any amount received by a full-time employee paid by an hourly wage as compensation for work performed in excess of 40 hours a week, and any amount paid as overtime compensation in accordance with the federal Fair Labor Standards Act of 1938.
(B) Notwithstanding subparagraph (A) of this paragraph, for employers governed by the federal National Railway Labor Act, the exemption provided in this paragraph shall apply to hourly component overtime compensation as defined in applicable collective bargaining agreements.
(C) For each tax year beginning on or after January 1, 2026, each employer shall submit to the department, on forms prescribed by the department, the total amount received by full-time employees paid by an hourly wage as compensation for work performed in excess of 40 hours a week and the total number of employees to which such compensation was paid. The data shall be provided monthly or quarterly and shall be due no later than the due date for the corresponding monthly or quarterly withholding tax returns.
(D) The department may require additional information of employers and shall be authorized to adopt rules and regulations to provide for the administration of this paragraph."
SECTION 2.
This Act shall become effective on July 1, 2025, and shall be applicable 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.