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Georgia Senate sends tax refund, income tax cut to governor’s desk

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3 months ago

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georgiarecorder.com – Stanley Dunlap – 2025-03-20 17:08:00

Georgia Senate sends tax refund, income tax cut to governor’s desk

by Stanley Dunlap, Georgia Recorder
March 20, 2025

A pair of Georgia bills that would lower the state income tax rate and provide an extra refund to taxpayers later this year are now awaiting Gov. Brian Kemp’s signature.

The state Senate Thursday greenlighted House Bill 111 and 112, the fourth in a series of tax rebate package bills in recent years that the Republican governor prioritized.

Under HB 111, the state income tax rate of 5.39% would be reduced to 5.19% effective July 1, which would save taxpayers about $869 million.

The income tax bill was adopted by a 30-23 vote, primarily along party lines with majority Republican support. Senators unanimously supported HB 112, which would allow Georgians who filed income taxes to receive an additional refund later this year.

If signed into law, a $250 rebate would go to individual filers, $375 to heads of households and $500 to married couples filing jointly.

Sen. Josh McLaurin, a Sandy Springs Democrat, said the one-time time tax refund will mean more money sooner to most Georgians than a permanent reduction in the income tax rate.

“Some of us will be voting for immediate tax relief because $250 matters a lot more than $30,” McLaurin said. “We do not need to be making structural changes that cripple our ability to respond to social ills for the rest of time.”

Sen. Elena Parent, an Atlanta Democrat, said the problem with the income tax reduction is that it delivers outsized benefits to Georgian who are at the top of the income bracket at the expense of the average taxpayers.

Acworth Republican Sen. Ed Setzler disputed that the income tax reduction was favorable to the top 1% of wealthy Georgians. He said a majority of filers in the top income bracket are from small business owners, who could put the $3,000 refund from the state to good use.

Cornelia Republican Sen. Bo Hatchett, the sponsor of the income tax legislation, said that 100% of the overall tax savings goes to 100% of taxpayers.

“A reduction in taxes helps everyone,” Hatchett said. “It  also helps spur further job creation, which also helps the very same people some of my colleagues highlighted today. It’s very important that we continue to budget conservatively so that we can continue to provide opportunities like this tax  cut and like this rebate.”

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Georgia Recorder is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Georgia Recorder maintains editorial independence. Contact Editor John McCosh for questions: info@georgiarecorder.com.

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