Georgia enacts $1 billion tax cuts for residents

Governor Brian P. Kemp signed two significant pieces of tax legislation in Cobb County on Tuesday, aimed at delivering over $1 billion in tax relief to Georgians. Alongside First Lady Marty Kemp, members of the Georgia General Assembly, and other state and local leaders, Kemp announced the tax relief measures as part of efforts to reduce the tax burden on residents and spur economic growth.

"Here in Georgia, we safeguard every dollar of taxpayer money, because we know it belongs to the people, not the government," Governor Kemp stated. He highlighted the reduction of state income tax and the issuance of a third one-time tax refund as the main components of the legislation. "While other states are running up budget deficits and raising taxes on their citizens, we're investing in the priorities of our state while further cutting taxes and returning more than a billion dollars to hardworking Georgians," Kemp added.

Two bills were enacted during the signing: HB 111 and HB 112. HB 111 was sponsored by Representative Soo Hong and co-sponsored by Representatives Matthew Gambill, Lauren McDonald III, Will Wade, Bruce Williamson, and Shaw Blackmon. It was carried in the Senate by Senator Bo Hatchett and accelerates the state income tax cut initiated in 2022 by HB 1437. The bill reduces the state income tax rate by an additional 20 basis points, bringing the total income tax rate down to 5.19 percent, resulting in an estimated savings of $880 million for taxpayers next year.

HB 112, sponsored by Representative Lauren McDonald III and backed by Representatives Soo Hong, Matthew Gambill, Will Wade, Alan Powell, and Shaw Blackmon—and carried in the Senate by Senator Drew Echols—authorizes a $1 billion one-time special tax refund. Under the new law, Georgians who file taxes jointly will receive $500, single filers will get $250, and heads of household will receive $375.

Lt. Governor Burt Jones expressed support for the tax cuts, saying, "With Governor Kemp’s leadership, Georgia continues to serve as an example for the rest of the nation on how to reduce taxes and give more than a billion dollars back to our citizens, while having a healthy reserve and fiscally sound budget."

Speaker Jon Burns also commented on the legislation, stating, “The Georgia House was proud to champion HB 111 and HB 112 that further reduce the tax burden on hardworking Georgians and put over $1 billion back in the pockets of our state’s taxpayers.”

In the wake of Hurricane Helene, Governor Kemp emphasized a ratified suspension of the state gas tax, underscoring his commitment to providing direct relief during challenging times. Kemp expressed gratitude towards Lieutenant Governor Burt Jones, Speaker Jon Burns, and members of the General Assembly who supported the legislative efforts.