$1B Refund, Tax Cut Passed By GA Assembly

GEORGIA — Taxpayers in Georgia are set to receive $1 billion total in a surplus income tax refund after the state Senate on Thursday approved a bill that would send up to $500 to residents.

Additionally, the Senate approved House Bill 111, dropping the state income tax rate from 5.39 percent to 5.19 percent.

House Bill 112 unanimously passed with a 52-0 vote. The bill also fully swept the House, making way for a third rebate since the start of Gov. Brian Kemp's tenure.

"Thankful to see HB 112 receive final passage today as we work to put money back in the pockets of hardworking Georgians. I’m looking forward to signing this legislation to help families fighting through high prices and inflation caused by the prior administration’s policies," Kemp tweeted late Thursday afternoon.

HB 112 provides $250 to single tax filers, $375 to head-of-household filers and $500 to married couples filing jointly, according to Kemp's office at the time.

The governor first announced the proposed rebate in October, adding the refund would not be taxable income. Aside from filing their 2023 and 2024 individual tax returns, state officials said no additional action is necessary in order for residents to obtain the rebate.

Also successful in the Senate chambers, HB 111 was approved in Senate chambers with a 30-23 vote, lowering the income tax rate.

"Thank you to the State Senate for supporting our effort to bring Georgia’s income tax rate down another 20 basis points. While other states are raising taxes, we’re cutting them and returning billions of dollars back to hardworking Georgians," Kemp tweeted.

A timeline for when Kemp plans to sign HB 112 and HB 111, and when the rebate payments will be made, has not been released.