State tax bills for some Georgians could rise as a result of the new federal tax law—to the tune of around $4.7 billion over the next five years—and Gov. Nathan Deal and legislative leaders have been working on a plan to mitigate this. The result is two bills—House Bill 821 and House Bill 918—that combine the 2017 and 2018 tax reform legislation debated by the Georgia General Assembly.
At a Feb. 20 press conference, Gov. Deal outlined the components of this legislation. HB 821 is the 2017 update to the Internal Revenue Code, which adopts some federal provisions and eliminates the state tax on jet fuel. HB 918 is the 2018 Internal Revenue Code update, which will:
- Double the standard deduction for all Georgia taxpayers
- Lower the individual and corporate income tax rate to 5.75 percent from 6 percent (beginning Tax Year 2019)
- Reduce income tax rates to 5.5 percent in Tax Year 2020, if approved by the General Assembly and sitting governor at that time
“This legislation represents one of the single largest income tax reforms in state history,” Deal said. “In fact, it will amount to more than $5 billion in savings to Georgia taxpayers over the next five years.”
State Director Nathan Humphrey noted NFIB/GA’s support of the effort. “Reducing the tax burden on small businesses is the best way to empower businesses to grow and invest in their employees and infrastructure. This is great news for Georgia’s small businesses.”
