| 1 | 1 | | 25 LC 46 0957 |
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| 2 | 2 | | Senate Bill 26 |
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| 3 | 3 | | By: Senators Rhett of the 33rd, Harbison of the 15th, Payne of the 54th, Bearden of the 30th, |
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| 4 | 4 | | Hickman of the 4th and others |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, |
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| 8 | 8 | | 1 |
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| 9 | 9 | | relating to imposition, rate, computation, exemptions, and credits relative to state income2 |
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| 10 | 10 | | taxes, so as to require the state revenue commissioner, with regard to military retirement3 |
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| 11 | 11 | | income, to determine and apply a cost-of-living adjustment to the amount of allowable4 |
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| 12 | 12 | | retirement pay excluded from Georgia taxable net income; to provide for rules and5 |
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| 13 | 13 | | regulations; to provide for related matters; to provide for an effective date and applicability;6 |
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| 14 | 14 | | to repeal conflicting laws; and for other purposes.7 |
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| 15 | 15 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 |
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| 16 | 16 | | SECTION 1.9 |
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| 17 | 17 | | Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to10 |
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| 18 | 18 | | imposition, rate, computation, exemptions, and credits relative to state income taxes, is11 |
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| 19 | 19 | | amended by adding a new paragraph to subsection (a) of Code Section 48-7-27 to read as12 |
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| 20 | 20 | | follows:13 |
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| 21 | 21 | | "(5.2) The commissioner shall by regulation establish and maintain rules concerning the |
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| 22 | 22 | | 14 |
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| 23 | 23 | | determination and application of cost-of-living adjustments to the amount of allowable15 |
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| 24 | 24 | | retirement pay excluded from Georgia taxable net income with regard to income received16 |
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| 25 | 25 | | S. B. 26 |
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| 26 | 26 | | - 1 - 25 LC 46 0957 |
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| 27 | 27 | | as retirement benefits for military service. Such rules shall include the determination and17 |
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| 28 | 28 | | use of an appropriate cost-of-living index which reflects the effects of inflation and18 |
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| 29 | 29 | | deflation on persons receiving retirement income in this state for military service in the19 |
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| 30 | 30 | | armed forces of the United States or the reserve components thereof. In the regulation20 |
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| 31 | 31 | | of such rules, the commissioner may use the Consumer Price Index as reported by the21 |
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| 32 | 32 | | Bureau of Labor Statistics of the United States Department of Labor as such index is used22 |
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| 33 | 33 | | to determine adjustments to social security payments or any other similar index23 |
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| 34 | 34 | | established by the federal government if the commissioner determines that such federal24 |
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| 35 | 35 | | index reflects the effects of inflation and deflation on persons receiving retirement25 |
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| 36 | 36 | | income in this state for military service in the armed forces of the United States or the26 |
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| 37 | 37 | | reserve components thereof. Any such cost-of-living adjustment determined appropriate27 |
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| 38 | 38 | | by the commissioner shall result in a proportional adjustment to the amount of military28 |
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| 39 | 39 | | retirement income excluded from Georgia taxable net income."29 |
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| 40 | 40 | | SECTION 2.30 |
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| 41 | 41 | | This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years31 |
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| 42 | 42 | | beginning on or after January 1, 2026.32 |
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| 43 | 43 | | SECTION 3.33 |
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| 44 | 44 | | All laws and parts of laws in conflict with this Act are repealed.34 |
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| 45 | 45 | | S. B. 26 |
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| 46 | 46 | | - 2 - |
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