Georgia families could get massive tax relief going forward if the proposals from House Republicans are approved. The proposals offering tax relief to Georgia families are part of the 2024 legislative plans to reduce income and property taxes, as well as offer financial assistance to parents. The proposal specifically includes raising child tax deductions and the homestead exemption, taking the cap off the Revenue Shortfall Reserve and accelerating the tax cuts.
Raising child tax deductions
In a press conference last week, the state legislative leaders proposed a series of tax measures to offer tax relief to Georgia families.
House Speaker Jon Burns and many Republican lawmakers were at the Capitol last week to announce the tax relief measures for Georgia families that they believe will alleviate at least some financial burden families face due to rising home costs and inflation.
“Right now, there is no more important issue impacting Georgia families than higher prices as a result of President Biden and Washington’s 40-year high inflation,” Burns said, adding “…we are doubling down on returning more money to Georgia taxpayers and delivering economic relief by lowering taxes for parents, homeowners, businesses and all families across our state.”
Speaker Burns said his GOP caucus will support the measure to increase the amount that parents can deduct per child from their annual state income taxes from $3,000 to $4,000. With the current income tax rate of 5.49%, the deduction comes out to be $55 more per child, or about $150 million in total.
State Representative Lauren Daniel (R-Locust Grove) will sponsor this legislation to raise the deduction amount.
Other proposals offering tax relief to Georgia families
Other tax relief measures for Georgia families include legislation to double the homestead tax exemption from $2,000 to $4,000 to bring home cost and interest rate relief to homeowners. Representative Matt Reeves (R-Duluth) introduced this legislation.
Doubling the homestead tax exemption is estimated to reduce property tax bills by $100 million statewide. If lawmakers approve this legislation, voters will also have to approve the increased exemption in a November referendum.
“It’s tough to buy homes as home values have risen so doubling the homestead exemption from $2,000 to $4,000 gives homeowners more relief at a time when they need it a lot,” said Reeves.
Those against the legislation have countered it with a plan that caps the rate at which property values could rise. This, in turn, would limit future property tax increases.
Tax relief measures for Georgia families also include legislation reducing the state income tax from 5.75 percent to 5.39 percent. If approved, this legislation would return about $1 billion to taxpayers. State Representative Lauren McDonald (R-Cumming) will sponsor this legislation.
Another proposed legislation calls for removing the cap on the revenue shortfall reserve. These tax relief proposals come as Speaker Burns and the other 235 representatives and senators face reelection later this year.