25 LC 59 0028-EC
House Bill 111
By: Representatives Hong of the 103
rd
, Gambill of the 15
th
, McDonald III of the 26
th
, Wade
of the 9
th
, Williamson of the 112
th
, 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,
1
relating to the imposition, rate, computation, exemptions, and credits relative to income2
taxes, so as to reduce the rate of the tax; to provide for related matters; to provide for an3
effective date and applicability; to repeal conflicting laws; and for other purposes.4
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5
SECTION 1.6
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the7
imposition, rate, computation, exemptions, and credits relative to income taxes, is amended8
by revising subsection (a.1) of Code Section 48-7-20, relating to individual tax rates, credit9
for withholding and other payments, and applicability to estates and trusts, as follows:10
"(a.1)(1) On and after January 1, 2024
2025, the tax imposed pursuant to subsection (a)11
of this Code section shall be 5.39 5.19 percent for taxable years beginning on or after12
January 1, 2024 2025; provided, however, that such rate shall be reduced by 0.10 percent13
annually beginning on January 1, 2025 2026, until the rate reaches 4.99 percent, provided14
that such annual reductions in the tax rate shall be subject to delays as provided in15
paragraph (2) of this subsection.16
H. B. 111
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(2) Each prospective annual reduction in the tax rate that would otherwise occur as
17
provided in paragraph (1) of this subsection shall be delayed by one year for each year18
that any of the following are true as of December 1:19
(A) The Governor's revenue estimate for the succeeding fiscal year is not at least 320
percent above the Governor's revenue estimate for the present fiscal year;21
(B) The prior fiscal year's net revenue collection was not higher than each of the22
preceding three fiscal years' net tax revenue collection; or23
(C) The Revenue Shortfall Reserve provided for in Code Section 45-12-93 does not24
contain a sum that exceeds the amount of the decrease in state revenue projected to25
occur as a result of the prospective reduction in the tax rates set to occur the following26
year.27
(3) The Office of Planning and Budget shall make the determinations necessary to28
implement the provisions of paragraph (2) of this subsection and shall report its29
determinations by December 1 of each year to the department, the Speaker of the House30
of Representatives, the President of the Senate, and the chairpersons of the House31
Appropriations Committee, the House Ways and Means Committee, the Senate32
Appropriations Committee, and the Senate Finance Committee. This paragraph shall not33
be applicable after the final reduction to the rate of 4.99 percent occurs."34
SECTION 2.35
This Act shall become effective on July 1, 2025, and shall apply to all taxable years36
beginning on or after January 1, 2025.37
SECTION 3.38
All laws and parts of laws in conflict with this Act are repealed.39
H. B. 111
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