24 LC 50 0620-EC/AP House Bill 1015 (AS PASSED HOUSE AND SENATE) By: Representatives McDonald of the 26th, Blackmon of the 146th, Jones of the 47th, Hong of the 103rd, Wade of the 9th, and others A BILL TO BE ENTITLED AN ACT To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, 1 relating to the imposition, rate, computation, exemptions, and credits relative to income 2 taxes, so as to reduce the rate of the tax; to provide for related matters; to provide for an 3 effective date and applicability; to repeal conflicting laws; and for other purposes. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 5 SECTION 1. 6 Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the 7 imposition, rate, computation, exemptions, and credits relative to income taxes, is amended 8 by revising subsection (a.1) of Code Section 48-7-20, relating to individual tax rates, credit 9 for withholding and other payments, and applicability to estates and trusts, as follows: 10 "(a.1)(1) On and after January 1, 2024, the tax imposed pursuant to subsection (a) of this 11 Code section shall be 5.49 5.39 percent for taxable years beginning on or after January 1, 12 2024; provided, however, that such rate shall be reduced by 0.10 percent annually 13 beginning on January 1, 2025, until the rate reaches 4.99 percent, provided such annual 14 reductions in the tax rate shall be subject to delays as provided in paragraph (2) of this 15 subsection. 16 H. B. 1015 - 1 -

24 LC 50 0620-EC/AP (2) Each prospective annual reduction in the tax rate that would otherwise occur as 17 provided in paragraph (1) of this subsection shall be delayed by one year for each year 18 that any of the following are true as of December 1: 19 (A) The Governor's revenue estimate for the succeeding fiscal year is not at least 3 20 percent above the Governor's revenue estimate for the present fiscal year; 21 (B) The prior fiscal year's net revenue collection was not higher than each of the 22 preceding three fiscal years' net tax revenue collection; or 23 (C) The Revenue Shortfall Reserve provided for in Code Section 45-12-93 does not 24 contain a sum that exceeds the amount of the decrease in state revenue projected to 25 occur as a result of the prospective reduction in the tax rates set to occur the following 26 year. 27 (3) The Office of Planning and Budget shall make the determinations necessary to 28 implement the provisions of paragraph (2) of this subsection and shall report its 29 determinations by December 1 of each year to the department, the Speaker of the House 30 of Representatives, the President of the Senate, and the chairpersons of the House 31 Appropriations Committee, the House Ways and Means Committee, the Senate 32 Appropriations Committee, and the Senate Finance Committee. This paragraph shall not 33 be applicable after the final reduction to the rate of 4.99 percent occurs." 34 SECTION 2. 35 This Act shall become effective on July 1, 2024, and shall apply to all taxable years 36 beginning on or after January 1, 2024. 37 SECTION 3. 38 All laws and parts of laws in conflict with this Act are repealed. 39 H. B. 1015 - 2 -