SUMMARY: LC 34 5383-ECS

This bill would reduce the state personal income tax rate. Currently the tax rate stands at 6% for individual incomes above $7,000 and $10,000 for married couples filing jointly. In 2019, the tax rate would drop to 5.75% and 5.5% in 2020. The 2020 drop would require a joint resolution by the Georgia legislature and the governor to be introduced during the 2020 session. The standard deduction for an individual would increase from $2,300 to $4,600 and for married couples who file jointly the increase goes from $3,000 to $6,000.

Corporate tax rates would drop from 6% to 5.75%

A sales tax break for jet fuels would also be implemented. Jet fuel would be exempt from the state sales tax of 4% and would also be exempt from a portion of additional sales tax applied by local governments for needs such as schools. 

EFFECTIVE DATE:

Shall be applicable to all taxable years beginning on or after January 1, 2019