Latest news with #HouseBill111
Yahoo
a day ago
- Business
- Yahoo
Georgia residents to receive special tax refund checks soon, Gov. Kemp says
ATLANTA () — Georgia Governor Brian Kemp and the Georgia Department of Revenue (DOR) announced today that the state will begin issuing one-time, special tax refunds this week. The refunds were approved during Georgia's legislative session (HB 112) to provide a one-time tax credit for individual taxpayers who filed income tax returns for the 2023 and 2024 taxable years. Most eligible taxpayers who filed their 2023 and 2024 returns in a timely manner and before the filing deadlines can expect to receive their refund within the coming weeks. 'Because we've managed our state's resources wisely, we're again able to return money to hardworking Georgians who know how best to use it,' said Governor Kemp. 'Along with our acceleration of the largest income tax rate cut in state history, this latest refund is just one more way we're working to support the people of our state, their families, and their businesses, because that's not the government's money, it's theirs!' Individual's refund amount will depend on their tax liability from the 2023 tax year and is capped at: $250 for single filers and married individuals filing separately $375 for head of household filers $500 for married individuals filing jointly In addition to HB 112, the General Assembly also passed House Bill 111, which will reduce Georgia's income tax rate from 5.39% to 5.19%. This was the second acceleration of the income tax cut implementation schedule signed by Governor Kemp in 2022. For more details, including Frequently Asked Questions and refund tracking, visit: Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Forbes
25-04-2025
- Business
- Forbes
Kemp Cuts Georgia Income Tax, While S.C. Lawmakers Aim To Follow Suit
The South Carolina State House in Columbia On April 15, Tax Day, Governor Brian Kemp (R-Ga.) signed House Bill 111, legislation lowering Georgia's flat income tax from 5.49% to 4.99%. This new income tax cut, the latest in a series of rate reductions passed by Georgia lawmakers in recent years, is projected to save taxpayers $880 million annually. 'While other states are running up budget deficits and raising taxes on their citizens, we're investing in the priorities of our state while further cutting taxes and returning more than a billion dollars to hardworking Georgians,' Governor Brian Kemp said in a statement. 'That's on top of the tax relief we've given in prior years and is a direct result of our conservative budgeting.' 'With the governor's signature, HB 111 doubles down on the efforts of prior years to reduce the tax burden on Georgians and job creators,' noted the release from Governor Kemp's office. 'With this second acceleration cutting the state income tax rate by another 20 basis points, the total income tax rate will now be down to just 5.19% - a decrease of 56 basis points from the original rate of 5.75%.' One week after Governor Kemp signed Georgia's latest income tax cut into law, legislators in neighboring South Carolina are advancing a bill to further reduce and flatten the Palmetto State's income tax. South Carolina House Speaker Murrell Smith (R) introduced legislation last month, H. 4216, that would move South Carolina from a progressive income tax code with a top rate of 6.2% to a flat 3.99% income tax, with revenue triggers established to cut the rate to 2.49% in the coming years. This week, the House Ways & Means Committee is considering three options for amending the bill. At a Ways & Means Committee hearing held the morning of April 22, Frank Rainwater, executive director of South Carolina's Revenue and Fiscal Affairs Office, outlined three income tax reform plans for lawmakers to choose from. Option A would proceed with the move to a 3.99% flat rate. Option B would move the state to a 4.74% flat tax. Option C would cut the top income tax rate from 6.2% to 5.49% and reduce the bottom tax bracket from 3.5% to 1.99%. Speaker Smith and Ways & Means Chairman Bruce Bannister (R) offered these options in response to concerns that colleagues expressed about the initial version of H. 4216, particularly the share of filers who would see a net increase despite the lower rate. In some legislative bodies leadership is criticized for figuring out a deals in private and foisting them on their caucus without any opportunity for amendment. Speaker Smith is taking the opposition approach in the South Carolina House with tax reform, offering adjustments to address the concerns of colleagues. 'This is the way the legislative process should work,' Chairman Bannister said at the start of the Tuesday morning hearing. During the April 22 Ways & Means Committee hearing, Representative Gilda Cobb-Hunter (D) expressed concerns about scheduling income tax rate reduction based on certain annual revenue triggers being met. Representative Cobb-Hunter questioned 'whether it's fiscally prudent to use revenue triggers given economic uncertainty.' Uncertainty, however, is precisely what revenue triggers are designed to address. H. 4216, in its current form, brings South Carolina's income tax rate down to 2.49% if certain revenue triggers are met. In North Carolina, meanwhile, the state's 4.25% flat income tax will fall to 2.49% in the coming years if revenue triggers are met and will fall further, to 1.99%, under the new budget passed by the North Carolina Senate on April 17. If the economy crashes and state revenue collections subsequently plummet, revenue triggers will not be met and further rate reduction will not take place. In that way revenue triggers act as a fiscal safety valve, ensuring that if revenues unexpectedly decline, that drop will not be exacerbated by additional rate reduction. The way revenue trigger proponents see it, uncertainty over the economy and future revenue collections, rather than make revenue triggers a mechanism of concern as Rep. Cobb-Hunter suggested, makes them all the more needed. During this week's Ways & Means hearing, Republicans and Democrats questioned whether South Carolina needs an improved income tax code given how many people are moving to the state, one of the nation's fasted growing for many years now. Just because California's economy is growing and is now the world's fourth largest, as Governor Gavin Newsom (D-Calif.) is touting, doesn't mean that California's 13.3% top marginal income tax rate, its cap and trade program, or its heavy regulatory burden do no harm. But that's the same logic employed by those who claim South Carolina's strong population growth doesn't mean the state's relatively high marginal income tax rate is without consequence. Several lawmakers also noted during Tuesday hearing that the effective rate paid by South Carolinians is much lower than the listed top rate of 6.2%. While proponents of further rate reduction concede that point, they do not agree that levying such a relatively high top marginal rate is without harm. Lawmakers questioned the goal of H.4216 during this week's Ways & Means hearing. It's goal, proponents contend, can be thought of as unshackling South Carolina from the competitive disadvantage that is its 6.2% top rate, which will still be the highest in the region even when it falls to 6%. While South Carolina has experienced relatively high levels of population in-migration, proponents of tax reform note that has been the case despite the imposition of such an uncompetitive top marginal rate. 'If we are competing for people, we are certainly winning,' Representative Todd Rutherford (D) said during the hearing. Proponents of further income tax rate reduction, however, describe the state as analogous to a champion Olympic sprinter who has been winning medals despite competing with leg weights around their ankles. It's great that the runner has done so well despite the ankle weights, but imagine the records they could set if they ditched the ankle weights. During the Ways & Means Committee hearing, Representative Nathan Ballentine (R) said he was struggling with the fact that, even though it's a minority of filers, some would face a higher income tax bill despite lower rates, even under the alternative tax reform proposals outlined by Dr. Rainwater. Yet even under some of the most pro-growth and conservative tax reform packages in recent history, though they cut taxes on net and for most, did result in higher bill for some filers. Some South Carolina lawmakers might decide they will oppose any tax reform plan that, even though it's a net cut overall and achieves needed rate reduction, results in a net increase for even a small minority of taxpayers. Any legislators who operate under that rationale, however, would also have to oppose the Tax Cuts and Jobs Act, which cut taxes for most but did result in higher bills for some, as well as President Donald Trump's efforts to extend those rate cuts. 'If we don't do anything we aren't that bad,' Representative Ballentine said at Tuesday's hearing. If South Carolina lawmakers don't do anything, however, the Palmetto State will remain home to the highest income tax rate in the southeastern U.S. Beyond that is the fact that competing states have continued to enact income tax rate-reducing reforms in recent weeks and months. Given that, many believe that if South Carolina lawmakers take no action to go beyond currently scheduled tax cuts, they'll be falling behind the competition.
Yahoo
15-04-2025
- Business
- Yahoo
Gov. Kemp set to sign 2 major tax relief bills into law today
The Brief Gov. Brian Kemp is signing two tax relief bills: one accelerates Georgia's largest-ever state income tax cut, and the other authorizes a $1 billion special rebate. Eligible taxpayers could receive rebates of up to $500, depending on filing status, with payments issued after 2024 returns are processed. To qualify, residents must file 2023 and 2024 state returns, not be dependents, and be full-time Georgia residents; refunds may be reduced by debts owed to the state. ATLANTA - Gov. Brian Kemp is set to sign two major tax relief measures into law today, promising financial benefits for millions of Georgia taxpayers. Check back here at approximately 11:15 a.m. for a livestream of the bill signing. What we know The first measure, House Bill 111, accelerates what Kemp's office calls the largest state income tax cut in Georgia history. The bill will speed up a previously approved phased reduction in the state income tax rate, putting more money back into the hands of working Georgians sooner. The second bill, House Bill 112, authorizes a $1 billion special state income tax refund. The one-time rebate is available to eligible taxpayers who meet specific requirements and will be issued after the processing of 2024 state returns. The rebate amounts are: $250 for individuals filing as single or married filing separately $375 for those filing as head of household $500 for couples filing jointly The Georgia Department of Revenue will issue the lesser of either your 2023 state income tax liability or the maximum rebate amount for your filing status. Payments will be made automatically via direct deposit or check, depending on how you filed your 2024 return. To qualify for the rebate, taxpayers must: File Georgia income tax returns for both 2023 and 2024 Not be claimed as a dependent on someone else's 2023 return Be a full-time Georgia resident for tax purposes Dig deeper The rebates will not be considered taxable income under Georgia law. However, they may be reduced or offset if the recipient owes outstanding debts to the state. No interest will be paid on the refund amounts. These tax breaks come at a time when Georgia's budget surplus remains strong and are part of the state's ongoing efforts to return excess revenue to taxpayers.
Yahoo
15-04-2025
- Business
- Yahoo
Georgia Gov. Kemp to sign bill for $1 billion special tax refund. Here's how much you could get
Gov. Brian Kemp will sign a pair of tax-related bills on Tuesday. One would give Georgia taxpayers another special tax refund while the other will reduce Georgia's state income tax rate. Kemp will hold a ceremonial signing at 11:15 a.m. on Tax Day with members of the Georgia General Assembly in attendance. >>> STREAM ACTION NEWS JAX LIVE <<< House Bill 112 passed the General Assembly for the one-time special refund, which Kemp first proposed back in October. It matches the previous refunds that taxpayers received in 2022 and 2023. Single tax filers will receive $250; single head-of-household filers $350; and joint tax filers $500. Taxpayers who filed returns for 2023 and 2024 would be eligible. The governor's office says the refunds would total $1 billion. [DOWNLOAD: Free Action News Jax app for alerts as news breaks] The Georgia General Assembly also passed House Bill 111 to lower the state income rate to 5.19%. The state income tax cut had already been planned, but HB 111 accelerated the new tax rate retroactive to Jan. 1 of this year. Read: Report reveals incident that preceded Duval inmate Charles Faggart's death stretched over 2 hours Read: Jacksonville police identify 9 officers removed from jail duties after injury of inmate who died Read: Man dead, woman injured in Jacksonville double shooting [SIGN UP: Action News Jax Daily Headlines Newsletter] Click here to download the free Action News Jax news and weather apps, click here to download the Action News Jax Now app for your smart TV and click here to stream Action News Jax live.
Yahoo
15-04-2025
- Business
- Yahoo
Gov. Kemp to sign bills for another special tax rebate, new state income tax rate
Gov. Brian Kemp will sign a pair of tax-related bills on Tuesday. One would give Georgians another round of a special tax rebate while the other will reduce Georgia's state income tax rate. Kemp will hold a ceremonial signing at 11:15 a.m. on Tax Day with members of the Georgia General Assembly in attendance. [DOWNLOAD: Free WSB-TV News app for alerts as news breaks] House Bill 112 passed the General Assembly for the one-time special refund, which Kemp first proposed back in October. It matches the previous refunds that taxpayers received in 2022 and 2023. Single tax filers will receive $250; single head-of-household filers $350; and joint tax filers $500. Taxpayers who filed returns for 2023 and 2024 would be eligible. The Georgia General Assembly also passed House Bill 111 to lower the state income rate to 5.19%. The state income tax cut had already been planned, but HB 111 accelerated the new tax rate retroactive to Jan. 1 of this year. [SIGN UP: WSB-TV Daily Headlines Newsletter]
