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Ways & Means advances bill to accelerate income tax rate cut to 5.19% for 2025
Summary
The committee passed HB 111 to accelerate a scheduled personal income tax-rate reduction to 5.19% for tax year 2025 and keep the path to a 4.99% rate by 2027, sponsor said; some members raised concerns about tying corporate and personal tax changes.
The Georgia House Ways & Means Committee voted to advance House Bill 111, a measure that accelerates a previously enacted schedule of personal income tax-rate reductions so that the rate will be 5.19% for tax year 2025, the sponsor said.
Representative (Leader) Hong presented HB 111 on behalf of the governor, describing it as an acceleration of tax cuts first enacted in 2022 by HB 1437 and further amended in later legislation. “Because of our conservative budgeting, we're able to accelerate that tax cut once again and we're amending the schedule to, from 5.39% to 5.19% for tax year 02/2025,” Leader Hong said. He said the bill maintains a schedule toward an eventual 4.99% rate by 2027.
Representative Frey spoke in opposition, saying he supports returning money to taxpayers but objected to linking the personal income tax cut to a reduction in the corporate tax rate and said he would vote no. Vice Chairman Kelly asked whether the acceleration was intended to provide relief from inflation and from federal actions; Leader Hong agreed the acceleration was intended to help Georgians dealing with inflation and said it reflected conservative budgeting.
After brief discussion and questions, a motion to report the bill favorably passed. The committee conducted a show-of-hands vote at the chair’s request and recorded the motion as passed.
Members raised concerns about the corporate tax tie and about changing previously established schedules; those concerns were recorded in committee remarks but did not change the committee’s favorable report.
The sponsor referenced related measures including HB 1437 (2022) and HB 1015 (amendment earlier) that set the original schedule and fiscal threshold language; HB 111 was presented as an additional acceleration consistent with those prior laws.
