ATLANTA — The Georgia House of Representatives passed a measure cutting individual and corporate state income taxes.
House Bill 918 would double the state standard deduction for Georgia taxpayers for all filing statuses, effective Jan. 1, 2018, and would reduce the income tax rate for individuals and businesses from 6 percent to 5.75 percent, effective Jan. 1, 2019.
The legislation would also reduce the tax rate to 5.5 percent, effective Jan. 1, 2020, and would require the General Assembly to approve and the governor to sign in order to take effect. The bill would eliminate the sales tax on jet fuel to help Georgia be more competitive and encourage airlines to fly additional direct flights from Georgia to destinations around the globe.
Proponents say the proposal addresses state revenue projections resulting from the recent Federal Tax Act.
“This important legislation will help decrease the tax burden for all Georgians by allowing our citizens to keep more money in their pockets, and I am proud to be a co-sponsor on this significant bill,” Jesse Petrea, R-Savannah, said in a news release. “Georgia’s tax laws have not been modernized in over 80 years, and with the recent changes to the Federal Tax Act, this legislation is necessary and long overdue.”
The House of Representatives passed the bill by a 134-36 margin on Thursday, Feb. 22. It now goes to the Senate for consideration.