Georgia hearing on HB 111 would accelerate planned individual income tax cut; fiscal note ordered

A House subcommittee heard a presentation on House Bill 111 on behalf of the governor seeking to accelerate scheduled reductions in Georgia's individual income tax rate.

The bill’s presenter said HB 111 would advance a 20-basis-point reduction that would move the statutory rate toward 5.19 percent for the 2025 tax year, citing the 2022 law (HB 1437) that began multi-year rate cuts. The presenter said the change would save Georgia taxpayers roughly $880,000,000; committee leadership said a fiscal note has been requested to quantify impacts before any further action.

Members emphasized that the hearing was informational only and reminded the public and committee that the measure was subject to existing statutory triggers and the committee’s usual review procedures. Some lawmakers asked for additional time to evaluate long-term revenue effects; one member said recent rapid tax changes made them “uncomfortable” without more data. The majority leader and other members discussed the state’s regional tax competitiveness as a rationale for the proposal.

No formal motion or vote occurred at the hearing. The committee chair indicated members will return the bill for a subsequent hearing once staff have prepared the requested fiscal analysis and members have had more time to review the projected revenue impacts.

The presentation referenced prior legislation (HB 1437, 2022) as the basis for the multi-year rate schedule the bill would accelerate.

The subcommittee did not make a referral or adopt the bill at this session; the hearing was recorded for follow-up work and scheduling.