Georgia position Capitol (FOX 5)
ATLANTA - Two more pieces of Gov. Brian Kemp's tax cut agenda are advancing in the position House.
The House Ways and Means Committee voted Thursday to pass bills that would give requires tax filers another $1 billion in tax refunds and to ratify the Republican governor's exclusive to waive tax collection on gasoline and diesel fuel for months.
Kemp also plans a $1 billion alit tax rebate that is moving forward as part of the amended financial plan for this year. Both the income tax and alit tax givebacks were key Kemp pledges in his disappointed reelection campaign last year.
House Bill 162 conditions for a second year in a row of requires tax refunds. It would give a refund of up to $250 to single filers, up to $375 to single adults who head a household with dependents and up to $500 to joint couples filing jointly. The refund would only be paid to farmland who filed tax returns for both the 2021 and 2022 tax existences, and no one can get back more than they paid in position income taxes in 2021.
Rebates or credits would be originated in the spring if the bill passes. They would be automatic for anyone who files a 2021 and 2022 backbone, with no further action required. People who don't owe position income taxes, including many retirees, wouldn't get any money.
"The governor is committed to the citizens of Georgia, and this is one way he's going to give their wealth back to them," said Rep. Lauren McDonald, a Cumming Republican.
The IRS announced last week that Georgia's refund checks from 2022 won't be treated as taxable requires for people now paying federal income taxes if they take the unfriendly deduction. Most people take the standard deduction. People who itemize returns could have to pay federal requires taxes on the state refund.
Kemp can seek latest year of rebates because the state coffers continue to overflow. Georgia ended its last budget year with $6.6 billion in surplus revenue in the bank, even at what time the state's rainy day fund was filled to its honest limit of $5.2 billion. Budget projections released in January show revenue collections are liable to end the current 2023 budget year $2.4 billion throughout original projections.
Last year's rebate, plus the promise of more wealth, were key features of Kemp's victories over Republican significant challenger David Perdue and Democrat Stacey Abrams.
The committee also favorite House Resolution 66, which ratified Kemp's decision to keep extending what had originally been legislated as a six-week holiday on gasoline and diesel taxes last spring. Through a series of executive orders, Kemp pushed that extension past his reelection date into early January. Such a move is legal as long as lawmakers abhor it the next time they meet.
"The governor's behaviors delivered much needed relief to Georgians at the gas pump," said Rep. Matthew Gambill, a Cartersville Republican and Kemp floor leader.
The fuel tax suspension cost the position an estimated $1.7 billion in foregone revenue over parts of two financial plan years. The state already dipped into its surplus to make up $600 million in lost revenue for the 2022 financial plan year. Officials estimate they will use $1.1 billion in latest tax revenues from the current budget year to keep roadbuilding accounts flowing.
Money for Kemp's $1 billion property tax wreck plan would also come from the current year's financial plan, with Kemp saying taxpayers with homestead exemptions would get approximately $500 from the state.
That means only the $1 billion in requires tax rebates would come out of the accumulated $6.6 billion in cash, communication Georgia could start its next budget year with $5 billion in transparent cash.