Georgia House Bill HB277

Georgia 2023-2024 Regular Session

• Introduced: 2/7/23

Caption

Income tax; compensation to a taxpayer for governmental condemnation of such taxpayer's real property shall not be subject to tax; provide

Notes

HB 277's passage hinges on various factors, including its reception by committee members and the overall legislative climate surrounding property rights and taxation. With its effective date set for taxable years beginning on or after January 1, 2023, timely deliberation and approval will be essential for its implementation.

Impact

If enacted, HB 277 would change the computation of taxable net income in Georgia, effectively exempting compensation payments from income tax when real property is condemned. This change could significantly impact taxpayers who are affected by government actions, as they will not be taxed on the compensation they receive. The measure aims to ensure that property owners are not further financially burdened by state taxes when they lose their property for public interests.

Summary

House Bill 277 proposes an amendment to Chapter 7 of Title 48 of the Official Code of Georgia Annotated concerning income taxes. The bill focuses on the taxation of income corresponding to compensation received by taxpayers for the government condemnation of their real property. It specifically states that such compensation should not be subject to state income tax, thus offering potential financial relief to property owners who have had their property condemned for public use.

Contention

While the bill has been introduced with the intention of protecting property owners, it may engender some debate regarding its implications for state tax revenue. Critics might argue that exempting such income could lead to a reduction in the tax base, thereby affecting state funding for essential services. Still, supporters are likely to emphasize the importance of compensating property owners fairly without imposing additional tax burdens following a mandatory condemnation.