Georgia House Bill HB973

Georgia 2023-2024 Regular Session

• Introduced: 1/22/24

Caption

Income tax; certain retirement income received from long-term public service as a law enforcement officer, firefighter, emergency medical technician, or communications officer; exclude

Impact

If enacted, HB 973 will significantly impact the financial landscape for public service workers transitioning into retirement, primarily benefiting those who have dedicated long careers in service-oriented fields. The amendment is expected to alleviate some financial burden on these retirees by allowing them to retain a larger portion of their retirement income, enabling enhanced economic stability for these individuals. This could ultimately lead to more disposable income within the community as these individuals spend their benefits locally.

Summary

House Bill 973 seeks to amend the Georgia tax code by excluding specific retirement income from the taxable net income of individuals who have served long-term in certain public service roles. This bill specifically targets retirees from law enforcement, firefighting, emergency medical services, and communication roles within the state or federal government. As proposed, up to $17,500 of retirement income for those under the age of 62 who have completed at least 25 years of service would be exempt from state income taxes, provided their Georgia earned income meets a minimum threshold.

Contention

While the bill may garner significant support from public service unions and retirees, there may be opposition based on concerns regarding tax equity and state revenue implications. Some lawmakers could argue that tax breaks for certain professions could create discrepancies in tax treatment across other public sectors or create funding shortages for other vital public services. The proposal might also prompt discussions around broader tax reform considerations, highlighting the complexity of balancing fiscal constraints with the desire to reward long-term public service.