Georgia 2025-2026 Regular Session

Georgia House Bill HB111 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	25 LC 59 0028-EC~~/AP~~
2		-	House Bill 111 ~~(AS PASSED HOUSE AND SENATE)~~
	1	+	25 LC 59 0028-EC
	2	+	House Bill 111
3	3		By: Representatives Hong of the 103
4	4		rd
5	5		, Gambill of the 15
6	6		th
7	7		, McDonald III of the 26
8	8		th
9	9		, Wade
10	10		of the 9
11	11		th
12	12		, Williamson of the 112
13	13		th
14	14		, and others
15	15		A BILL TO BE ENTITLED
16	16		AN ACT
17	17		To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
18	18		1
19	19		relating to the imposition, rate, computation, exemptions, and credits relative to income2
20	20		taxes, so as to reduce the rate of the tax; to provide for related matters; to provide for an3
21	21		effective date and applicability; to repeal conflicting laws; and for other purposes.4
22	22		BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5
23	23		SECTION 1.6
24	24		Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the7
25	25		imposition, rate, computation, exemptions, and credits relative to income taxes, is amended8
26	26		by revising subsection (a.1) of Code Section 48-7-20, relating to individual tax rates, credit9
27	27		for withholding and other payments, and applicability to estates and trusts, as follows:10
28	28		"(a.1)(1) On and after January 1, 2024
29	29		2025, the tax imposed pursuant to subsection (a)11
30	30		of this Code section shall be 5.39 5.19 percent for taxable years beginning on or after12
31	31		January 1, 2024 2025; provided, however, that such rate shall be reduced by 0.10 percent13
32	32		annually beginning on January 1, 2025 2026, until the rate reaches 4.99 percent, provided14
33	33		that such annual reductions in the tax rate shall be subject to delays as provided in15
34	34		paragraph (2) of this subsection.16
35	35		H. B. 111
36		-	- 1 - 25 LC 59 0028-EC~~/AP~~
	36	+	- 1 - 25 LC 59 0028-EC
37	37		(2) Each prospective annual reduction in the tax rate that would otherwise occur as
38	38		17
39	39		provided in paragraph (1) of this subsection shall be delayed by one year for each year18
40	40		that any of the following are true as of December 1:19
41	41		(A) The Governor's revenue estimate for the succeeding fiscal year is not at least 320
42	42		percent above the Governor's revenue estimate for the present fiscal year;21
43	43		(B) The prior fiscal year's net revenue collection was not higher than each of the22
44	44		preceding three fiscal years' net tax revenue collection; or23
45	45		(C) The Revenue Shortfall Reserve provided for in Code Section 45-12-93 does not24
46	46		contain a sum that exceeds the amount of the decrease in state revenue projected to25
47	47		occur as a result of the prospective reduction in the tax rates set to occur the following26
48	48		year.27
49	49		(3) The Office of Planning and Budget shall make the determinations necessary to28
50	50		implement the provisions of paragraph (2) of this subsection and shall report its29
51	51		determinations by December 1 of each year to the department, the Speaker of the House30
52	52		of Representatives, the President of the Senate, and the chairpersons of the House31
53	53		Appropriations Committee, the House Ways and Means Committee, the Senate32
54	54		Appropriations Committee, and the Senate Finance Committee. This paragraph shall not33
55	55		be applicable after the final reduction to the rate of 4.99 percent occurs."34
56	56		SECTION 2.35
57	57		This Act shall become effective on July 1, 2025, and shall apply to all taxable years36
58	58		beginning on or after January 1, 2025.37
59	59		SECTION 3.38
60	60		All laws and parts of laws in conflict with this Act are repealed.39
61	61		H. B. 111
62	62		- 2 -