By Clint Thompson
State taxes highlighted this week’s work in the Georgia Legislature.
Georgia Agribusiness Council (GAC) President Will Bentley talked about the discussions being had in Atlanta which would have significant ramifications for the state’s farmers.
“This week had a huge emphasis on taxes with the Senate passing late last week out of committee a bill to attempt to get rid of the income tax and phase that out over a couple of years. They actually put that out in front of the full Senate and passed that out on Thursday after several hours of debate,” Bentley said. “That was a big deal, and in their version of reducing taxes, the House put their priority out there of lowering property taxes and freezing property taxes on your homestead.
“Differing views but the same ultimate goal of lowering taxes for Georgians, which is a great thing. It’s just figuring out who’s going to pay for the services and what type of form that comes out of the General Assembly and what they can agree to over the coming weeks.”
Senate Bill 476 passed. In it, income taxes would be eliminated in the first year for individuals earning $50,000 or less and families making $100,000 or less. Families earning above the thresholds would see an estimated $5,200 in annual savings.
Long Time Coming
As of this year, 41 states and the District of Columbia have individual income taxes. Nine states, including neighboring Florida and Tennessee, have no state income taxes in place. Georgia’s plan to reduce income taxes has been a long time coming.
“That’s been something that I believe Gov. (Brian) Kemp and his administration, Gov. (Nathan) Deal before that, and Gov. (Sonny) Perdue even before that, trying to make sure that we’re competitive with our neighboring states; with Florida and Tennessee both not having income taxes,” Bentley said. “I think Gov. Kemp’s ultimate goal is to get that state income rate below 5% and his budget this year and proposal this year does do that.
“I think ultimately both the House and Senate are interested in lowering taxes for Georgians as affordability becomes the new catch phrase in politics.”
Georgia has a 5.19% individual income tax rate.