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Georgia Tax Legislation: Sweeping Changes Passed in 2024 Session
In an eventful legislative session, the Georgia General Assembly has enacted a series of tax bills that promise to reshape the state’s fiscal landscape. Notably, the establishment of a tax court within the judicial branch marks a significant shift from the current administrative court system. This move is poised to enhance the adjudication of tax disputes, with HR 598 proposing a constitutional amendment to grant the new court judicial power. Should voters approve this amendment in November, HB 1267 will operationalize the court starting January 1, 2026.
Income tax policy has also seen substantial revisions. The individual income tax rate is set to decrease from 5.49% to 5.39% for tax years commencing after January 1, 2024, as per HB 1015. In a parallel development, HB 1023 ensures that corporate income tax rates align with the revised individual rates, affecting both domestic and foreign corporations.
Another critical piece of legislation, HB 1162, aligns Georgia’s revenue code with the federal Internal Revenue Code as of January 1, 2024. This annual conformity bill does not introduce any further decoupling from federal tax law.
However, HB 1181 introduces a significant change by curtailing the carryforward period for most income tax credits from ten years to five years for certain credits and from five years to three years for others, effective January 1, 2025. This bill also establishes sunset dates for various incentives and sales tax exemptions, slated for 2029.
On the sales tax front, HB 1192 temporarily suspends the data center sales tax exemption, halting new certificates of exemption for high-technology data center equipment between July 1, 2024, and June 30, 2026. The bill also revises job creation requirements for data centers and establishes a Special Commission on Data Center Energy Planning.
Property taxes have not been left untouched. HB 808 raises the ad valorem tax exemption for tangible personal property, and HB 1019 seeks voter approval to increase homestead exemptions. HR 1022 and HB 581 address homestead exemptions in different capacities, with the latter also proposing a new local option sales tax for property tax relief.
Enhancing transparency, SB 366 mandates more detailed reporting on state revenue sources and tax credit spending, expanding the scope of audits for tax incentives.
While these measures have successfully passed both chambers, several proposed bills did not make it through the legislative process, including those that sought to limit film tax credits and amend data center exemptions for new tenants.
The fate of these bills now rests with the Governor, who has until May 7 to sign or veto the legislation. In the absence of gubernatorial action, they will automatically become law at the end of the stipulated period.
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