Atlanta

3 tax credit bills headed to Georgia Senate after unanimous vote in House

By Sam Sachs, WSBTV.com

Georgia Legislature

By Sam Sachs, WSBTV.com

ATLANTA — Three separate tax credit bills are one step closer to the desk of Gov. Brian Kemp, thanks to recent unanimous votes in the Georgia House of Representatives.

According to lawmakers, and legislative records, House Bills 1015, 1019 and 1021 were approved in the Georgia House and headed to the Senate, setting up a series of tax relief options for Georgia residents.

Should versions pass the Georgia Senate that match the versions in the House, and Kemp approves the bills and sign them into law, Georgians’ income taxes will be lowered, while the amounts covered by homestead exemptions for homeowners will be increased and impacts on taxes related to dependent exemptions will see increases for families.

Here’s how those bills break down.

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HB 1015 makes good on a promise by both Kemp and lawmakers to bring income tax relief to Georgians.

In December, and again during a January address of the General Assembly, Kemp said he wanted to have the state’s income tax lowered to 5.39%, accelerating a pre-planned tax decrease to 4.99% that was already on the books.

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Separately, HB 1019 would increase the exemption levels for some of the state’s ad valorem taxes, as they relate to homeowners. Homestead exemptions are a property tax mechanism that allows a resident to claim a property as their primary residence, effectively freezing the property tax value for the home in question while they live there.

Under HB 1019, the exemption limit is increased from $2,000 to $4,000 of the value of a homestead. Any value increase over $4,000 will remain subject to taxation, according to the bill.

Additionally, a provision of the bill adjusts how ballot referenda related to tax rates is conducted beginning in November.

Finally, HB 1021 focuses on how income taxes are affected by dependent exemptions, or the tax carve-outs for care of other individuals who are not a spouse such as a child, elder or other relatives that a household financially supports. HB 1019 increases the exemption for each dependent from $3,000 to $4,000 and applies to all taxable years starting Jan. 1, 2024.

However, reporting by the Associated Press says there are some exceptions to provisions of HB 1019. Some counties have local homestead tax legislation that doesn’t allow for the statewide exemption to be added on top of the local exemption. While it’s unclear how many homeowners the measure would affect, House Republicans said it would save homeowners statewide less than $100 million a year.

The AP further reported that some “senators are likely to counter with a plan that would cap the rate at which assessed property values could rise for tax purposes, which could limit future property tax increases.”

Following the passage of the three bills in the House, Speaker Jon Burns (R-Newington) released the following statement, in part:

“Cutting taxes and returning more money to taxpayers continues to be a priority for the Georgia House of Representatives, and today’s passage of HB 1015, HB 1019, and HB 1021 will help return over a billion dollars to Georgia families, homeowners, and taxpayers alike,” adding that “these priorities will deliver significant relief to taxpayers across the state, put more money back into their pockets, and continue to boost our economy as the best state in the country to live, work and raise a family—and I look forward to quick passage by the Senate and signature by Governor Kemp.”

The Associated Press contributed to this report.

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