House Bill 357

Chair's Name: Larry O�Neal

Committee: Ways & Means

House Sponsor: Larry O�Neal

HB 357 brings the Georgia tax code in line with provisions of the Federal tax code by adopting changes that occurred late in congressional session. This will allow Georgians to take advantage of several tax cuts for 2006.

This bill received a Do Pass recommendation from the Ways & Means Committee and comes to the House Floor under the Structured Rule. 

Chairman O�Neal�s opinion of this legislation:

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

The federal government signed an Act in late 2006 that extended certain tax provisions that were set to end in 2005 through 2006.  If Georgia does not adopt these provisions for 2006, these tax provisions will not apply for Georgia 2006 tax returns, and taxpayers will be required to make a number of state-level adjustments to their federal adjusted gross income which is the starting point for the Georgia return.  This will be a significant additional burden for taxpayers, preparers, and Department of Revenue administrators. 

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

To conform to federal tax provisions for 2006 that provide great tax relief to taxpayers and which make compliance easier.

THIS LEGISLATION:

• Reduces the Tax Burden on our Citizens:

The effect of passing this bill is to provide tax relief estimated at $7 Million over the period from 2007 to 2008. 

• Other:

If this bill is not passed, taxpayers will have to make state-level adjustments to federal AGI to compute their Georgia tax liability which will increase complexity and make compliance with our income tax system much more difficult.