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Senate Bill 26
By: Senators Rhett of the 33rd, Harbison of the 15th, Payne of the 54th, Bearden of the 30th,
Hickman of the 4th 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 imposition, rate, computation, exemptions, and credits relative to state income
taxes, so as to require the state revenue commissioner, with regard to military retirement
income, to determine and apply a cost-of-living adjustment to the amount of allowable
retirement pay excluded from Georgia taxable net income; to provide for rules and
regulations; 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
imposition, rate, computation, exemptions, and credits relative to state income taxes, is
amended by adding a new paragraph to subsection (a) of Code Section 48-7-27 to read as
follows:
<ins>"(5.2) The commissioner shall by regulation establish and maintain rules concerning the
determination and application of cost-of-living adjustments to the amount of allowable
retirement pay excluded from Georgia taxable net income with regard to income received
</ins>
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<ins>as retirement benefits for military service. Such rules shall include the determination and
use of an appropriate cost-of-living index which reflects the effects of inflation and
deflation on persons receiving retirement income in this state for military service in the
armed forces of the United States or the reserve components thereof. In the regulation
of such rules, the commissioner may use the Consumer Price Index as reported by the
Bureau of Labor Statistics of the United States Department of Labor as such index is used
to determine adjustments to social security payments or any other similar index
established by the federal government if the commissioner determines that such federal
index reflects the effects of inflation and deflation on persons receiving retirement
income in this state for military service in the armed forces of the United States or the
reserve components thereof. Any such cost-of-living adjustment determined appropriate
by the commissioner shall result in a proportional adjustment to the amount of military
retirement income excluded from Georgia taxable net income."
</ins> 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.