Georgia CommonsHouse Ways & Means Committee, February 11, 2026
2025-2026 Regular Session · 406 CLOB · 35 min
This is a machine transcript of the General Assembly's video, made by a speech-recognition model. It is not an official record and can mishear words, names, and numbers. Speakers are not identified. The video is the record: every timestamp links to the moment it plays.
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Summary
Written by an AI model (gpt-6.1-sol) from the transcript. It is not part of the record, and the video is what was said.
The committee approved HB 1001 to accelerate an income tax rate cut and HB 880 to provide further phased tax cuts and higher deductions, with an amendment linking the latter bill's tax-rate reductions to financial conditions. Members also approved an employment tax credit, tax relief for independent fire services, an arts admission tax exemption extension, a proposed constitutional amendment on timber taxes, and a partial update aligning Georgia tax law with federal changes. Members questioned why the federal tax breaks for tips and overtime were excluded from HB 1199, which passed. The committee also held a voice vote on HB 1070, concerning railroad maintenance credits, but the chair did not explicitly announce the result.
Bills discussed (8)
Each account covers the stretch of the meeting it names. The bill's number is said in that stretch, unless it was the only bill on a committee's agenda.
HB 519. Revenue and taxation; amount of federal work opportunity credit claimed by a taxpayer shall also be allowed as a tax credit; provide
From 0:09:13 · turns 7 to 29
The sponsor said HB 519 would give employers a $500 tax credit, subject to a $10 million cap, for hiring people who face barriers to employment. The sponsor described 10 eligible groups, including disabled veterans, people with felony records and people receiving government assistance, and said the incentive would help people enter the workforce. A committee member asked whether eligibility was limited to veterans. The sponsor said it was not and clarified that the credit goes to employers, not employees. The member supported the bill while raising broader concerns about criminal background checks preventing people from finding work. The committee approved the bill by voice vote.
HB 964. Revenue and taxation; state and local title ad valorem tax fee; exempt certain motor vehicles used in fire protection services for local governments
From 0:11:40 · turns 30 to 37
The sponsor said HB 964 would remove vehicle ad valorem taxes and equipment sales taxes for independent fire-service contractors, commonly called volunteer fire departments. The sponsor said this would treat them like local-government fire departments because both perform the same public-safety mission. There were no questions. The committee approved the bill by voice vote and sent it to Rules.
HB 1070. Income tax; increase and extend a credit for expenditures on maintenance of railroad track owned or leased by Class III railroads
From 0:12:34 · turns 38 to 48
The sponsor said HB 1070 would raise the short-line railroad track maintenance tax credit cap from $3,500 to $5,000 per maintained track mile and extend its expiration by five years. The sponsor said the credit was established in 2018 through the Rural Development Council and had not been updated since. No members asked questions. The committee held a voice vote, but the chair moved on without explicitly announcing the result.
HB 1077. Sales and use tax; exemption for sales of tickets, fees, and charges of admission to certain museums and fine arts performances or exhibitions at nonprofit facilities; extend sunset date
From 0:13:38 · turns 49 to 54
The sponsor said HB 1077 would extend the sales tax exemption for fine arts performance and exhibition tickets and related fees through December 31, 2032. The sponsor said the exemption applies only to 501(c)(3) organizations and helps keep tickets affordable. The committee approved the bill by voice vote without questions or further discussion.
HR 1000. Revenue and taxation; eliminate ad valorem tax assessment of certain timber at sale or harvest - CA
From 0:14:36 · turns 56 to 67
The sponsor described HR 1000 as a proposed constitutional amendment eliminating timber taxes on land covered by certain conservation and preferential tax agreements. The sponsor cited paper mill and sawmill closures and continuing damage from Hurricane Helene as reasons for the measure. The sponsor said the fiscal note estimated an impact of $10 million to $12.7 million and reported knowing of no opposition. The committee approved the resolution by voice vote without questions.
HB 1001. Income tax; reduce rate of tax
From 0:15:56 · turns 69 to 110
The sponsor said HB 1001 would lower the income tax rate to 4.99% in 2026, three years earlier than planned. Asked whether the state had met the financial conditions previously required for rate cuts, the sponsor and a governor's office representative said some conditions had been met but others had not. The representative said inflation made a revenue-comparison requirement difficult to meet and argued that conservative budgeting supported proceeding. Another member asked whether the state had covered its expenses after accelerating the previous year's cut despite unmet conditions, and the sponsor agreed. A further member cited roughly $9.5 billion returned to taxpayers and sufficient reserves. The sponsor put the amount at $9.7 billion and agreed that reserves were adequate. The committee approved the bill, recording three opposing votes. No total vote count was stated.
HB 880. Income tax; reduce tax rate that may be reached under certain conditions
From 0:20:33 · turns 112 to 163
The sponsor said the substitute for HB 880 would restore financial conditions for phased tax cuts, lower the income tax rate to 3.99%, raise the standard deduction to $15,000 and the dependent deduction to $5,000, and increase the exemption for seniors age 65 and older from $65,000 to $70,000. The sponsor also described a reserve limit of 20% of prior-year net revenue and permission to use undesignated surplus for legislatively authorized taxpayer relief. One member opposed the bill, saying it would reduce revenue by about $4 billion and primarily benefit higher earners. The sponsor responded that every taxpayer would receive a cut and that financial conditions would protect revenue. Another member proposed an immediate $50,000 standard deduction; the sponsor said that was outside the bill. A member offered an amendment linking rate reductions to the process governing deduction increases, saying it would preserve financial conditions and avoid conflict with HB 1001. Legislative counsel confirmed that intent. The committee adopted the amendment and passed the amended substitute after a show-of-hands vote. Opposition was expressed, but no count was announced.
HB 1199. Revenue and taxation; Internal Revenue Code and Internal Revenue Code of 1986; revise terms and incorporate certain provisions of federal law into Georgia law
From 0:28:40 · turns 169 to 217
The sponsor described HB 1199 as the annual update aligning portions of Georgia tax law with federal law. The sponsor said full adoption of recent federal changes would cost too much revenue, so the bill only partly adopts business and personal provisions, including partial treatment of certain business deductions. Members asked whether overtime and tips would remain taxable by Georgia. The sponsor confirmed they would and said exemptions would require separate legislation addressing dollar limits and time periods. The sponsor also identified the federal car-loan interest deduction as excluded, arguing that adopting these provisions would limit broader tax cuts. One member who employs tipped workers argued that exempting tips would favor those workers over other restaurant staff. Another member confirmed that the bill does not fully adopt the federal changes; the sponsor noted that Georgia had also declined full alignment with the 2018 federal tax changes. The committee approved the bill after a show-of-hands vote. Opposition was expressed, but no vote count was announced.
Transcript
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- 0:07:23
Good morning, everybody. I know we've, uh, we're a couple of minutes past. I know we'll have some people trickling in. We're not quite at full, um, I don't think we have the full committee here just yet, but it appears we have a quorum. So we'll go ahead and call the Ways and Means Committee meeting to order. And, uh, Chair Lady Camp, uh, is gonna open us up in a word of prayer if you would, please, ma'am.
- 0:07:45
All right. Thank you. Please bow with me. Dear Heavenly Father, we are thankful to be here this morning doing the people's business. Please bless us to be prudent and to use wise judgment in all we do. We are thankful for the many blessings we've been given and the opportunity to represent the good people of Georgia. And please bless all of us all day long with safety and health, and we ask these things in the name of Jesus Christ. Amen.
- 0:08:06
Thank you very much. And, um, the chair's gonna take a, a brief moment of personal privilege. Uh, we, uh, have, uh, uh, a blessing this morning to, uh, have in attendance, I think one of the finest, uh, county commission chairs in, in all the state, and one of the finest run counties in the state, uh, Chairman Dan Perdue, a very dear friend from Houston County. If you wouldn't mind just standing up and letting us see you for, for just a minute.
- 0:08:36
And his, uh, lovely wife, Jessica, and, and their wonderful daughter, Eleanor. Is that right? With them today and, uh, they are ... She's paging in the Senate.
- 0:08:48
What?
- 0:08:49
No. We, uh, we've, we've already had that conversation, so, uh, anyway. We'll welcome her back next time, uh, on, on, on the right side of the building. That's-
- 0:09:02
You were getting friendly. I don't know who's who.
- 0:09:07
If, um ... Let's see. We may skip around a little bit today, but Chairman Stephens, are you ready with HB 519?
- 0:09:14
Sure.
- 0:09:14
All right. The floor is yours, sir.
- 0:09:16
Um, thank you, Mr. Chairman. Um, this is the Work Opportunity Tax Credit to give folks the opportunity to, uh, get that American dream, um, and also help them get a home. Uh, that's another bill, not this one. But, um, need to get these folks that are basically unemployable, these folks that have, um, are veterans that might, um, uh, have had some issues, um, even felons, to give the employer a $500 tax credit up to a $10 million cap to, um, to hire these unemployable people, basically get them off welfare and get them the beauty and the satisfaction of a job.
- 0:09:55
I don't see any questions. Okay. Chairman Parsons.
- 0:10:00
I do have a question about it. Um, I mean, I think it's a good, you know, good bill. I mean, a good, good thing that you're doing here. But as far as ... Did you say felons?
- 0:10:09
There could... There's a list of 10 folks that are, um, everybody from disabled veterans to e- you know, ex-felons have a problem with, um, finding a job, as you might imagine.
- 0:10:20
Yes, they do.
- 0:10:21
This gives an employer an incentive to hire those and take a chance.
- 0:10:25
Now, but you're talk- but only if they're a veteran?
- 0:10:27
No, no. There's a list of folks that are, that are on TANF, that are, that are already on government assistance out of your wallet and mine-
- 0:10:35
Okay
- 0:10:35
... that need to have the opportunity to get into the workforce. So this gives the incentive to the employer, not the employee.
- 0:10:41
Okay. Well, I mean, it's a good, I think it's a good thing and a good bill. The only thing, that is an issue, and, uh, the whole thing about people not being able to get a job because of a back- a criminal background check.
- 0:10:50
Yes, sir.
- 0:10:51
And, uh, you know, I'm not sure about the list that you have. I mean, it, it needs to be looked at, the whole, the whole thing. These people who come back with a criminal background check and they can't get a job, and they're, they're never gonna be able to do better. I mean, I won't say that the, the- never an incentive for them to do anything bad, but I mean, it makes it, there's not much incentive to do, to do good if they can't even get a job. But I mean, it's a good bill, but, uh, it is an issue that I'm, I'm familiar with with some people I've helped. And thank you.
- 0:11:19
Yes, sir.
- 0:11:22
I don't see any other questions. Do we have a motion?
- 0:11:27
Second.
- 0:11:28
And a second. Any further discussion? Hearing none, all those in favor please signify by stating aye.
- 0:11:32
Aye.
- 0:11:33
Those opposed, like sign. All right. Bill passes.
- 0:11:36
Thank you.
- 0:11:36
Let's move on to rules. Gonna move down to HB 964. Uh, Representative Cannon.
- 0:11:43
Thank you, Mr. Chairman. Uh, just for the benefit of the committee, bill basically treats, um, what our independent contractor fire service, um, typically call volunteer fire departments, treats them the same as organic fire departments through local governments by removing the ad valorem tax on vehicles and sales tax on equipment. Because both organizations are involved in public safety, have the same mission, but one is taxed and one is not, but, uh, this treats them about the same. That's it, Mr. Chairman, if there are any questions.
- 0:12:15
I don't see any questions. It's a pleasure to the committee.
- 0:12:18
Thank you.
- 0:12:19
I have a motion and a second. Any further discussion? Hearing none, all in favor, please signify by stating aye.
- 0:12:23
Aye.
- 0:12:24
Those opposed, like sign. Bill moves on to rules.
- 0:12:27
Thank you, Mr. Chairman.
- 0:12:27
Congratulations. All right. Let's see. I'm gonna move down to HB 1070. Is that, uh, Chair Lady Hagan?
- 0:12:45
Thank you, Mr. Chairman.
- 0:12:46
Yes, ma'am.
- 0:12:47
Um, 1070, it, this is the Georgia Short Line Railroad Track Maintenance Tax Credit. It was established in 2018, uh, by the Rural Development Council. It hasn't been updated since then. So this bill would increase the, the credit cap per track mile that is maintained from 3,500 to 5,000 per mile, and it extends the sunset five more years. That is it.
- 0:13:17
Any questions for the author? Seeing none, what's the will of the committee? I heard a motion.
- 0:13:23
Second.
- 0:13:24
And there's a second. Any further discussion? Hearing none, all those in favor, please signify by stating, "Aye."
- 0:13:30
Aye.
- 0:13:30
Those opposed, like sign. All right, thank you, Madam-
- 0:13:32
Thank you
- 0:13:33
... Chair.
- 0:13:36
Let's see here. HB1077 is, uh, Chairman Williams.
- 0:13:45
Thank you, Mr. Chairman. This is, um, extending the sunset, um, tax exemption for tickets and related fees for fine arts performance or exhibitions. Um, it extends it to December 31st of 2032. Um, sales tax exemption, um, keep ticket prices low, make arts more affordable, and this is only for the 501[c][3]s.
- 0:14:09
Move to second.
- 0:14:10
Okay, so we have a motion and a second. Any further discussion? Hearing none, all in favor, please signify by stating, "Aye."
- 0:14:17
Aye.
- 0:14:18
Those opposed, like sign. All right, bill passes. Thank you, Chairman Williams.
- 0:14:27
Let's see. I think Chairman Carson was stuck in traffic. We'll see if we can push his, um...
- 0:14:34
Leader Efstration, are you ready with HR1000, sir?
- 0:14:37
Yes, Mr. Chair.
- 0:14:38
What number are you? I'm sorry.
- 0:14:41
Eight.
- 0:14:42
Eight.
- 0:14:42
Okay. The floor is yours, sir.
- 0:14:45
Thank you, Mr. Chairman. Building on the good work that Chairman Noel Williams, uh, started a few years ago, I bring House Resolution 1000. It's a constitutional amendment to eliminate timber tax in circumstances of, uh, conservation use. So this would be, uh, CUVA, FLPA, or the other, uh, preferential covenant. Um, the, uh, bill has no opposition that I'm aware of. It's very critical that we do in light of the closure of, uh, paper mills and sawmills across the state, as well as timber farmers still reeling from the aftermath of Hurricane Helene.
- 0:15:21
The, uh, fiscal note, um, estimates the impact is between 10 million and 12.7 million, and I'm not aware of any opposition to the bill. Would ask for the committee's favorable consideration.
- 0:15:35
Move.
- 0:15:36
I don't see any question. Okay. Several motions and a second. Uh, is there any further discussion? Hearing none, all those in favor, please signify by stating, "Aye."
- 0:15:44
Aye.
- 0:15:45
Those opposed, like sign. All right, bill passes, or resolution passes, sir. Thank you, Mr. Leader. Um, Leader Wade.
- 0:15:54
Yes.
- 0:15:54
You ready for 1001?
- 0:15:58
Yes, sir. I have, uh, Calvin of the governor's office if you want me to just in case there's questions.
- 0:16:02
Yes, of course.
- 0:16:09
Chairman, good morning. Committee members, thank you.
- 0:16:12
Good morning.
- 0:16:12
I bring to you guys House Bill 1001. Uh, this is LC590226EC. Uh, this is a continuation of what has passed, uh, the largest tax cut in Georgia's history. We are asking to now increase or lower the rate three years ahead of time down to 4.99%, which originally was supposed to be, um, by 2029, and this would bring this down in 2026.
- 0:16:47
Um, I believe we did have a good conversation about the details. I'm happy to go over the bill with line items if we need. It's pretty self-explanatory. Um, but, uh, at the chairman's, uh, pleasure, I'm happy to answer any questions, unless you want me to go through the lines. Very, very minor changes, um, to the, um, the, to the legislation. So happy to answer any questions.
- 0:17:11
Any questions for the author? 23.
- 0:17:16
Mr. Chairman, we have accelerated this above the original term by how much?
- 0:17:22
Three years.
- 0:17:23
Three years. Thank you.
- 0:17:24
Yes, sir.
- 0:17:27
It's 18. Is that, uh, Representative Frye?
- 0:17:31
I'll waive.
- 0:17:33
Representative Frye waives. Uh, Chairman Prince?
- 0:17:36
Uh, thank you, Mr. Chairman. Uh, as he mentioned, uh, we've accelerated this. Have we met any triggers to help accelerate this that we had earlier, or they've been removed?
- 0:17:46
So I'll let Calvin kind of go through that. But ul- ultimately-
- 0:17:50
We have
- 0:17:50
... um, some triggers, yes, some triggers, no. But based on just the overall will of the, the body and the budgeting process that we've done in Georgia, it's still in a position where we can continue to do this even though some triggers weren't made-
- 0:18:03
Do you want to read
- 0:18:04
... coming off of the highest inflation that we've seen in many years. But if you have a specific trigger you want to ask for, I'll let him respond.
- 0:18:11
Yeah, I'll, I'll just echo what, uh, Representative Wade said. Um, we, we've met some of the triggers, haven't met all of them. But, um, for example, the, uh, if the revenue collection for the previous three fiscal years, um, has to be higher than, than this year's, with the inflation that we've seen, that inflates the revenue collections. And so until we get back to a more flat period of inflation, it's, it's difficult to meet that trigger. But with the con- conservative budgeting of the legislature, um, and with the governor, uh, we feel like it is, it's still a good policy position to move forward with this.
- 0:18:43
He's waving. Thank you.
- 0:18:47
All right, uh, Vice Chairman Hong.
- 0:18:51
Thank you, Mr. Chair. I know we accelerated, um, last year as well, and, um, without meeting the triggers. And, uh, were we able to meet all of our state expenses despite the fact that we didn't meet the triggers and still accelerated last year?
- 0:19:08
The gentlelady knows of what she speaks.
- 0:19:09
Thank you.
- 0:19:14
Chairman Williamson.
- 0:19:15
Uh, thank you, Mr. Chairman. Uh, and, and for Leader Wade, is it not true that, i- in addition to the fact that the, through this General Assembly and the governor's leadership, we've returned almost nine point, $9.5 billion back to the taxpayer's pocket, uh, over the last, uh, several years. Is that not true?
- 0:19:31
That is true. I believe it's 9.7.
- 0:19:33
And, and, and, and yet even with that, we still have, uh- massive excess reserves to, to adequately will be able to fund this, uh, tax refund. Is that not true?
- 0:19:43
That is true. Thank you. Um, I believe the state economist, uh, has used the term structural surplus, and I think that's one of the things that we've, you know... All right. Budgeted wisely, sir. I don't see any further questions, so will the committee.
- 0:20:00
I guess so.
- 0:20:00
I have a motion to pass and a second. Any further discussion? Hearing none, all those in favor, please signify by stating, "Aye."
- 0:20:06
Aye.
- 0:20:07
Those opposed, like sign.
- 0:20:09
Aye.
- 0:20:10
All right, we have-
- 0:20:11
Two
- 0:20:11
... two nos. All right.
- 0:20:13
Three.
- 0:20:14
Three nos. All right, thank you. We'll record that. Thank you. Thank you very much. Thanks, leader. Appreciate it. All right, uh, I'm gonna turn the meeting
- 0:20:26
to Vice Chairman Kelly.
- 0:20:30
You're 21 here. I'll present 880. I think we have an amendment to be offered as well.
- 0:20:40
Thank you, Mr. Chairman. I'll recognize Chairman Shaw Blackmon to present substitute to House Bill 880.
- 0:20:50
Turn my own mic on. Thank you, uh, thank you, Representative Kelly. I, I appreciate that. Um, the, the only real substantive change, and just to go through the provisions of the bill, it, it does, uh, reinstate the triggers and takes, uh, the rate over time, uh, down to 399, raises the standard deduction up to 15,000, and the dependent deduction up to 5,000, uh, all in increments o- of a 10th.
- 0:21:22
Um, and then of course, we increase the senior exemption from 65,000 to 70,000 at the age of 65. And you'll see some changes requested by, um, the, uh, our, our friends in appropriations, the, uh, revenue shortfall reserve that moves to, to 20% of the previous fiscal year's, uh, net revenue, and that any amount of undesignated surplus may be used for taxpayer relief, um, pursuant to Acts of the General Assembly.
- 0:21:57
So, uh, some technical changes and some requests that we accommodated there. Um, be happy to answer any questions.
- 0:22:05
Thank you.
- 0:22:05
Mr. Chairman.
- 0:22:06
Thank you, Mr. Chairman. I know you've worked hard on this to provide substantial income tax relief in a responsible manner to Georgia taxpayers. Uh, do we have any questions for Chairman Blackmon?
- 0:22:21
All right. Doesn't look like you have any, have any questions. Uh, now the bill is before the committee. What's the posture of the committee? Move to pass. We have a motion to pass.
- 0:22:32
We, we do have a question here, um, and-
- 0:22:35
A late question
- 0:22:35
... uh.
- 0:22:36
I'm sorry, Mr. Chairman.
- 0:22:40
Representative Frye is recognized for a question.
- 0:22:43
Thank you. Uh, Mr. Chair, while I appreciate us allowing the opportunity for Georgians to keep their tax dollars, I, I do appreciate that, I feel like this bill, um, takes about $4 billion out of our revenue, where the majority of it is gonna go to the top 70% earners. And that this type of, uh, legislation, without a couple little tweaks, gives most of the tax refund back to the wealthiest in the state. And, um, so that's why I'll be against this bill.
- 0:23:17
Thank you, sir.
- 0:23:18
Was there a question in there, Representative?
- 0:23:20
Isn't it, isn't it true?
- 0:23:22
Well, thank you.
- 0:23:22
Thank you.
- 0:23:24
Uh, uh, thank you, Representative, for the question. If, if I may, Mr. Chairman, I just-
- 0:23:30
Of course
- 0:23:31
... just, uh, recognize that, um, every, uh, taxpayer in the state will receive a cut, um, under this proposal, not only in the rate but in the standard deduction. And if they have any dependents, they would also receive a, a, an additional cut there. Um, additionally, we do some work for our seniors, and, uh, then we, um, we, we put some responsibility, I guess, in, back into the, um, into the savings that we have so that we can, we can utilize those if for, for some reason the, the, the, the economics are moved from one year to the next.
- 0:24:08
But the triggers are in place to, to protect our budgeting and to protect our revenue.
- 0:24:14
Well, we'll get them there.
- 0:24:18
You have a question?
- 0:24:20
Thank you, sir. Um, would there be any app- Uh, Mr. Chair, would there be any appetite to go ahead and just raise the standard deduction to 50,000 straight off the bat and take care of those folks that, um, aren't making a whole bunch of money by giving them the opportunity to, uh, replace the EITC with the $50,000 standard deduction?
- 0:24:43
Well, this legislation does not address that, but I'm sure those are discussions that'll be ongoing.
- 0:24:49
Thank you.
- 0:24:50
Thank you. Are there any more questions before we move on to emotions? All right. No further questions. What's the will of the committee? Move to pass. All right, we have a motion. Do we have a second? All right, do we have any discussion or amendments?
- 0:25:04
Yes, sir.
- 0:25:05
All right. Chairman Williams.
- 0:25:07
Uh, thank you, uh, Chairman Kelly. I'd like to propose an amendment to House Bill 880, LC 590332S. I'd ask, uh, legislative counsel to direct their attention to line 24. If you go to where the, it says, "Until the rate reaches 3.99%," if you could make a reference after that, a comma, uh, uh, make a reference, uh, to line 76 through 100 of this same bill, uh, which, which leaves the income tax reduction trigger still in place, um- The, the goal here, the overarching goal is to make sure that House Bill 880 is going to continue without being in any kind of conflict with the governor's bill, which we just passed, uh, House Bill 1001.
- 0:25:56
If legisla- legislative council, can you do that for us?
- 0:26:00
Paul, do you... Is that clear to you what we're wanting to do? Do you have any questions?
- 0:26:04
Uh, no. I, I'm on 13. Can you hear me? Okay. Uh, I, I do not have any questions. Um, I'll just k- kind of restate it in terms of the way I understand it.
- 0:26:14
Glaize, my legal degree is, uh, lacking.
- 0:26:17
Yes, sir. Um, so my understanding is that the intent is at the end, well, towards the end of line 24, after the word "percent," to insert a reference to line 76 to 100, which will be, um, Code Section 48-7-27, subsection A, paragraph 1.1. So that will be the actual reference that goes into code, with the intent being for the process of reduction of tax rates in 48-7-20 to follow the same process as is set forth in line 76 to 100 for increases in the standard deduction.
- 0:27:03
Would that, s- does that sound appropriate?
- 0:27:05
Yes, sir. That's correct.
- 0:27:06
Okay.
- 0:27:07
Correct. All right. We have that in the, uh, posture of a motion, uh, as an amendment from Chairman Williamson. Is there a second to that amendment?
- 0:27:20
Second.
- 0:27:20
There's a second. Any time for discussion on the proposed amendment? All right, we'll vote on the amendment. All those in favor of the amendment, make it be known by saying aye.
- 0:27:31
Aye.
- 0:27:31
All opposed like sign. All right, the amendment carries. Any further discussion or amendments? All right, hearing none, we'll now take up House Bill 880, LC590332, committee substitute to House Bill 880 as amended. All those in favor, make it be known by saying aye.
- 0:27:50
Aye.
- 0:27:51
All opposed like sign.
- 0:27:52
Aye.
- 0:27:55
All r-
- 0:27:55
That means no. I'm sorry.
- 0:27:58
All r- all right. All those that, uh, wish to vote aye, will you raise your hands in favor? All those opposed, make it be known by raising your right hand. All right. The motion carries. The bill is now passed. Thank you.
- 0:28:15
Thank you, Representative Kelly. And, um, I believe Chairman Carson,
- 0:28:24
I know you had a little traffic problem this morning.
- 0:28:26
Rain is beautiful today.
- 0:28:29
It was a little slow for me coming in, too. Um, are you, uh, you ready?
- 0:28:36
Yes, sir.
- 0:28:37
Okay. All right. Well, uh, 1199. Chairman Carson.
- 0:28:42
Yes, sir. Uh, we, uh, folks, this is our annual housekeeping measure in regard to the IRC or Internal Revenue Code, uh, conformity update. There were, as many of you on the committee know, there were a number of changes made from the one big beautiful bill. Uh, I've put together, I know there's a, uh, uh, 1199 fiscal note in the, in the folder, as well as I put together a conformity summary. Um, we're doing our best to be good stewards to the taxpayers of Georgia, um, um, i- i- in regard to what we can do in regard to the legislation.
- 0:29:16
We, we simply can't afford as much of the revenue hit from all the measures that were adopted in the one big beautiful bill to adopt those down into Georgia. But we are, uh, conforming to, uh, quite a few of them.
- 0:29:31
We, um, there will still be, uh, and it, it, procedurally and structurally, it has to be a different bill if we're going to remove the tax on tips or remove the tax on overtime, particularly with regard to the thresholds in the one big beautiful bill. Um, there are some other items that are just, quite honestly, very, very expensive from a revenue loss, uh, in regard to Section 168 from qualified business property, uh, allowing for full expensing. There's other, uh, deductions for 179, which we're not, we're in partial, uh, conformity, but not full.
- 0:30:05
And, uh, this is a measure that I appreciate the chairman's work and, um, and as well as fiscal research general and especially, uh, Department of Revenue on this.
- 0:30:15
Yeah.
- 0:30:15
Happy to answer any questions.
- 0:30:17
Mr. Chairman, if, does the department have, would y'all like to address anything
- 0:30:23
regarding the conformity bill?
- 0:30:26
We're good.
- 0:30:28
Okay. Let's see. Chairman Parsons and then Representative Frye.
- 0:30:34
Thank, thank you, Chairman. Uh, I just wanna make sure I'm clear on this. Did you, did you say that overtime is, uh, addressed in this?
- 0:30:43
No.
- 0:30:44
It's not.
- 0:30:44
It is not. Therefore, someone that earns overtime income in 2025 and '26 and '27 and '28, under the one big beautiful bill, there is a threshold to which they don't pay tax on that, but we are still taxing that amount in Georgia.
- 0:30:59
Okay. I'm, I'm good with it. Thank you.
- 0:31:02
I think as a, as a committee and as, as a, as a Georgia House, we've really taken a stance more so on lowering taxes for everybody as opposed to taxing one income or not.
- 0:31:17
Representative Frye.
- 0:31:19
Thank you, Mr. Chair. Um, just another friendly clarification that this bill removes... So basically, the servers will have to pay taxes on their tips to the state. Is that correct?
- 0:31:34
The service will?
- 0:31:35
The servers.
- 0:31:36
The servers, yes.
- 0:31:36
Yeah. Okay. Thank you, sir.
- 0:31:40
We, we would love to give another tax cut to Georgians, but quite honestly, that, these two buckets, and there's actually a third one we're not complying with, it's a deduction for interest on car loans. Those are the three big items o- on the, on the personal provisions. They're, quite honestly, a large revenue hit and would, uh, further impede us for providing tax cuts for all Georgians.
- 0:32:03
And I, I think Chairman Carson that, uh, the way that's been contemplated is that, uh, you know, something that we would entertain as a separate measure.
- 0:32:12
Yes, sir. That's correct. As, as you remember in the HR 1 that passed and was signed by the President in July, that provision... There's, there's two provisions in there, one for no tax on tips, but it's only to a certain amount. I, I, I can't remember. It's not a huge amount. A- as well as an amount for overtime. I think it was 12,500 or 15,000 or what have you. That would need to be, to the chairman's point, that would need to be as part of separate legislation for Title 48. Because we're not dealing with just a section code, we're dealing with a threshold, a dol- a monetary dollar amount threshold.
- 0:32:46
Okay.
- 0:32:46
If we were to do something.
- 0:32:47
And a limited period of time. All right. Uh, Chairman Stevens?
- 0:32:51
Just, just to be clear, just I wanna make sure that I'm understanding. Instead of picking and choosing on who's might be getting the tax cut, we're lowering the rate for everyone across the board?
- 0:33:03
Chairman knows without a doubt what he speaks.
- 0:33:06
Who is 14? Is it... Okay. Chairman Carpenter.
- 0:33:10
Thank you, Chairman. Statement, not a question. Just as someone who employs a lot of people that work for tips, I can assure you that the people making tips are doing a whole lot better than the rest of the folks in the restaurant. So, uh, to give them a tax credit would actually be a disservice to the, to the busboys, food runners, dishwashers, et cetera.
- 0:33:32
I don't see any further questions. Um. Oh, I do have Chairman Prince.
- 0:33:38
More, uh, uh... So this was, uh, and this is to the author. And I'm sorry I got my back to you. But, uh, so we're not conforming totally with the, I guess, the big beautiful bill. Is that correct?
- 0:33:50
That is correct. We are not.
- 0:33:52
Okay. Thank you.
- 0:33:52
We are in partial conformity, um, that's correct, but on both business and personal provisions of the c- of the code.
- 0:34:02
In a, in a relatively consistent manner that we are year a- after year, fair to say, Mr. Chairman?
- 0:34:08
Well, if, if, if, uh, Chairman, well, my, I, we ha- we didn't do full conformity with the Tax Cuts and Jobs Act in 2018 either, so...
- 0:34:18
All right. Well, um, uh, this would serve as the second hearing. Um, is there anybody here that would need, wants to comment any further? What's the will of the committee?
- 0:34:33
Move to pass.
- 0:34:33
We have a motion and a second. Any further discussion? Hearing none. All those in favor, please signify by stating, "Aye."
- 0:34:41
Aye.
- 0:34:41
Those opposed, like same.
- 0:34:43
Aye.
- 0:34:46
All right.
- 0:34:46
How many we, how many we get?
- 0:34:49
All those in favor, please signify by raising your right hand. Okay. Those opposed, uh, like, raise your right hand. All right. Thank you. Bill passes. Thank you, Chairman Carson. Anybody have anything further for the good of the order? No. Thank you for being here this morning. We stand adjourned.