Signed by Governor Brian Kemp

Highlights:

• Requires that the imposed tax will be levied, collected, and paid annually (Sec. 2-1).

• Establishes the tax be levied at the rate of 5.25 percent with respect to Georgia taxable net income of each taxpayer (Sec. 2-2).

• Specifies that if an employer has deducted or withheld wages of an employee, the employee is allowed to use the total amount as a credit against the tax (Sec. 2-1) 

• Authorizes that each taxpayer can deduct one of the following amounts as a personal exemption when calculating Georgia taxable income (Sec 2-2):

• $24,000 for married couples filing a joint return;

• $12,000 for single taxpayers, head of household, or married taxpayer filing separately; and

• $3,000 for dependents of a taxpayer.

• Specifies that in lieu of the personal exemption each taxpayer is allowed, the total of all charitable deductions can be used when calculating federal taxable income (Sec. 2-3). 

• Requires a taxpayer to adjust their federal adjusted gross income if they have taken federal job tax credit with the condition of eliminating related salary and wage expenses (Sec. 2-3).

• Specifies that this Act will take effect upon either the approval by the Governor or upon the Act becoming law without such approval (Sec. 4-1).

• Exempts any tax, penalty, and interest liabilities and refund eligibility for prior taxable years from this Act (Sec. 4-1).

• Repeals all laws that are in conflict with this Act (Sec. 4-2).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a substitute bill that establishes a flat income tax rate of 5.25 percent.

Highlights:

• Requires that the imposed tax will be levied, collected, and paid annually (Sec. 2-1).

• Establishes the tax be levied at the rate of 5.25 percent with respect to Georgia taxable net income of each taxpayer (Sec. 2-2).

• Specifies that if an employer has deducted or withheld wages of an employee, the employee is allowed to use the total amount as a credit against the tax (Sec. 2-1) 

• Authorizes that each taxpayer can deduct one of the following amounts as a personal exemption when calculating Georgia taxable income (Sec 2-2):

• $24,000 for married couples filing a joint return;

• $12,000 for single taxpayers, head of household, or married taxpayer filing separately; and

• $3,000 for dependents of a taxpayer.

• Specifies that in lieu of the personal exemption each taxpayer is allowed, the total of all charitable deductions can be used when calculating federal taxable income (Sec. 2-3). 

• Requires a taxpayer to adjust their federal adjusted gross income if they have taken federal job tax credit with the condition of eliminating related salary and wage expenses (Sec. 2-3).

• Specifies that this Act will take effect upon either the approval by the Governor or upon the Act becoming law without such approval (Sec. 4-1).

• Exempts any tax, penalty, and interest liabilities and refund eligibility for prior taxable years from this Act (Sec. 4-1).

• Repeals all laws that are in conflict with this Act (Sec. 4-2).

Full Bill Text