Georgia HB 880: Unlocking the Promise Community Schools Act; enact

Bill Text

25 LC 59 0364S
House Bill 880 (COMMITTEE SUBSTITUTE)
By: Representatives Blackmon of the 146
th, Kelley of the 16
th, Stephens of the 164
th, Newton
of the 127
th, Martin of the 49
th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 and Part 1 of Article 4 of Chapter 12 of Title 451
of the Official Code of Georgia Annotated, relating to the imposition, rate, computation,2
exemptions, and credits relative to income taxes and management of budgetary and financial3
affairs, respectively, so as to reduce the income tax rate that may be reached under certain4
conditions; to provide for a gradual increase of the amount of the deduction from state5
taxable income for dependents that may be reached under certain conditions; to provide for6
a gradual increase of the amount of the standard deduction from state taxable income for7
individuals that may be reached under certain conditions; to provide for an increase in the8
amount of retirement income that may be excluded from state taxable income for individuals9
65 or older; to provide for certain amounts of the Revenue Shortfall Reserve to be used for10
tax relief; to increase the limitation on the maximum percentage of net revenue allowed to11
be held in the Revenue Shortfall Reserve; to remove outdated provisions; to provide for12
related matters; to provide for an effective date and applicability; to repeal conflicting laws;13
and for other purposes.14
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:15
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SECTION 1.16
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the17
imposition, rate, computation, exemptions, and credits relative to income taxes, is amended18
in Code Section 48-7-20, relating to individual tax rates, credit for withholding and other19
payments, and applicability to estates and trusts, by revising subsection (a.1) as follows:20
"(a.1)(1) On and after January 1, 2025, the tax imposed pursuant to subsection (a) of this21
Code section shall be 5.19 percent for taxable years beginning on or after22
January 1, 2025; provided, however, that such rate shall be reduced by 0.10 percent23
annually beginning on January 1, 2026, until the rate reaches 4.99 percent, 3.99 percent;24
provided that such annual reductions in the tax rate shall be subject to delays as provided25
in paragraph (2) of this subsection delayed by one year for each year that prospective26
annual reductions in the standard deduction are delayed for any of the reasons provided27
in paragraph (1.1) of subsection (a) of Code Section 48-7-27.28
(2) Each prospective annual reduction in the tax rate that would otherwise occur as29
provided in paragraph (1) of this subsection shall be delayed by one year for each year30
that any of the following are true as of December 1:31
(A) The Governor's revenue estimate for the succeeding fiscal year is not at least 332
percent above the Governor's revenue estimate for the present fiscal year;33
(B) The prior fiscal year's net revenue collection was not higher than each of the34
preceding three fiscal years' net tax revenue collection; or35
(C) The Revenue Shortfall Reserve provided for in Code Section 45-12-93 does not36
contain a sum that exceeds the amount of the decrease in state revenue projected to37
occur as a result of the prospective reduction in the tax rates set to occur the following38
year.39
(3) The Office of Planning and Budget shall make the determinations necessary to40
implement the provisions of paragraph (2) of this subsection and shall report its41
determinations by December 1 of each year to the department, the Speaker of the House42
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of Representatives, the President of the Senate, and the chairpersons of the House43
Committee on Appropriations Committee, the House Committee on Ways and Means44
Committee, the Senate Appropriations Committee, and the Senate Finance Committee. 45
This paragraph shall not be applicable after the final reduction to the rate of 4.99 percent46
occurs."47
SECTION 2.48
Said article is further amended by revising subsection (b) of Code Section 48-7-26, relating49
to personal exemptions, as follows:50
"(b) Each taxpayer shall be allowed as a deduction in computing his or her Georgia taxable51
income a personal exemption in the amount of $4,000.00 for each dependent of such52
taxpayer; provided, however, that such deduction shall be increased by $200.00 annually53
beginning on January 1, 2027, until such deduction reaches $6,000.00, provided that such54
increases in such deduction shall be subject to the same delays as those applied to standard55
deductions as provided in paragraph (1.1) of subsection (a) of Code Section 48-7-27."56
SECTION 3.57
Said article is further amended in subsection (a) of Code Section 48-7-27, relating to58
computation of taxable net income, by revising the introductory language and paragraph (1),59
by adding a new paragraph and a new