Bill would leave decision up to voters.
Tax Cut Proposal Passes Georgia Senate
The Georgia Senate recently passed a bill—Senate Resolution 756, sponsored by Senate Finance Chairman Judson Hill—that would put a constitutional amendment cutting income taxes on the statewide ballot this fall. If voters approve the measure, it would trim the top income tax rate from 6 percent to 5.8 percent, depending on revenue triggers.
Under the legislation, starting in 2018, if the state’s general fund had a minimum of $23.6 billion during the previous fiscal year, as well as at least 8 percent of that amount in reserve, income taxes would drop to 5.9 percent. Then, in 2020, if the general fund has at least $24.2 billion and 8 percent of that in reserve, income tax would drop again to 5.8 percent. Sen. Hill has said this would amount to savings of up too $400 million for taxpayers.
In addition to the tax cuts, the legislation would also require a three-fifths vote of the Legislature to pass any supplemental spending proposals that would change the state budget.
Although Gov. Deal has discouraged any major tax cut bills this session, reports the Atlanta Journal Constitution, the state’s strong tax revenue numbers—collections were up 10 percent in January—may embolden legislators in the House to pass the resolution, especially in an election year.
And the resolution is not the only tax cut measure up for consideration, either. House Bill 238, also proposed by Sen. Hill, would slash the income tax rate 10 percent.