ATLANTA (AP) – Shortly after grappling with budget cuts caused by flattening state revenue collections, the Georgia state House on Tuesday passed a proposal to reduce the state’s personal income tax to a flat rate of 5.375%.
Republican Rep. Brett Harrell of Snellville, one of the sponsors of House Bill 949, said it would ultimately reduce tax revenue by $250 million per year.
It would be the second reduction to Georgia’s tax rate in recent years. The General Assembly voted to cut the state’s top income tax rate from 6% to 5.75% in 2018, and a further cut to 5.5% was planned for this year.
Republican House Speaker David Ralston has said he viewed the bill as “delivering on that promise” made in 2018 for a further rate reduction.
The measure passed by a vote of 100-68. It goes next to the state Senate for more debate.
