Georgia House of Representatives - 1995/1996 Sessions

HB 51 - Income tax; exemptions and standard deductions; increase

Page Numbers - 1/ 2/ 3

1. Buck  135th            2. Royal  164th            3. Jamieson  22nd
4. Skipper  137th         5. Culbreth  132nd         6. Smith  175th


House Comm: W&M        /                Senate Comm:            /                                   
House Vote: Yeas       Nays             Senate Vote: Yeas     Nays                                  
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               House          Action         Senate                                                 
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              1/9/95   Read 1st Time                                                                
              1/10/95  Read 2nd Time                                                                
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Rules Suspended to Introduce                                                                        
                                                                                                    
Code Sections amended: 48-7-26, 48-7-27                                                             


HB 51                                             LC 18 6398






                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Article 2 of Chapter 7 of Title 48 of the Official
  1- 2  Code of Georgia Annotated, relating to imposition, rate,
  1- 3  computation, and exemptions regarding income taxes, so as to
  1- 4  increase the amount of certain exemptions; to increase the
  1- 5  amount of certain standard deductions; to provide for
  1- 6  applicability; to provide an effective date; to repeal
  1- 7  conflicting laws; and for other purposes.

  1- 8       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1- 9  Article 2 of Chapter 7 of Title 48 of the Official Code of
  1-10  Georgia Annotated, relating to imposition, rate,
  1-11  computation, and exemptions regarding income taxes, is
  1-12  amended by striking subsection (b) of Code Section 48-7-26,
  1-13  relating to personal exemptions with respect to income
  1-14  taxes, and inserting in its place a new subsection (b) to
  1-15  read as follows:

  1-16      "(b)(1) An exemption of $3,000.00 $5,000.00 shall be
  1-17      allowed as a deduction in computing Georgia taxable
  1-18      income of a taxpayer and spouse, but only if a joint
  1-19      return is filed.

  1-20      (2) An exemption of $1,500.00 $2,500.00 shall be allowed
  1-21      as a deduction in computing Georgia taxable income for
  1-22      each taxpayer other than a taxpayer who files a joint
  1-23      return.

  1-24        (3)(A) For taxable years beginning on or after January
  1-25        1, 1994, and prior to January 1, 1995, an exemption of
  1-26        $2,000.00 for each dependent of a taxpayer shall be
  1-27        allowed as a deduction in computing Georgia taxable
  1-28        income of the taxpayer.

  1-29        (B) For taxable years beginning on or after January 1,
  1-30        1995, an exemption of $2,500.00 for each dependent of
  1-31        a taxpayer shall be allowed as a deduction in
  1-32        computing Georgia taxable income of the taxpayer."



                                 -1- (Index)

                                                  LC 18 6398

                         SECTION 2.

  2- 1  Said article is further amended by striking paragraph (1) of
  2- 2  subsection (a) of Code Section 48-7-27, relating to the
  2- 3  computation of taxable net income, and inserting in its
  2- 4  place a new paragraph (1) to read as follows:

  2- 5      "(a)(1) Either the sum of all itemized nonbusiness
  2- 6      deductions used in computing federal taxable income if
  2- 7      the taxpayer used itemized nonbusiness deductions in
  2- 8      computing federal taxable income or, if the taxpayer
  2- 9      could not or did not itemize nonbusiness deductions,
  2-10      then a standard deduction as provided for in the
  2-11      following subparagraphs:

  2-12        (A) In the case of a single taxpayer or a head of
  2-13        household, $2,300.00 $3,700.00;

  2-14        (B) In the case of a head of household, $5,400.00;

  2-15        (B) (C) In the case of a married taxpayer filing a
  2-16        separate return, $1,500.00 $3,100.00;

  2-17        (C) (D) In the case of a married couple filing a joint
  2-18        return, $3,000.00 $6,200.00;

  2-19        (D) (E) An additional deduction of $700.00 $2,350.00
  2-20        for the taxpayer if he such taxpayer has attained the
  2-21        age of 65 before the close of his such taxpayer's
  2-22        taxable year.  An additional deduction of $700.00
  2-23        $2,350.00 for the spouse of the taxpayer shall be
  2-24        allowed if a joint return is made by the taxpayer and
  2-25        his such taxpayer's spouse and the spouse has attained
  2-26        the age of 65 before the close of the taxable year;
  2-27        and

  2-28        (E) (F) An additional deduction of $700.00 $2,350.00
  2-29        for the taxpayer if he such taxpayer is blind at the
  2-30        close of the taxable year.  An additional deduction of
  2-31        $700.00 $2,350.00 for the spouse of the taxpayer shall
  2-32        be allowed if a joint return is made by the taxpayer
  2-33        and his such taxpayer's spouse and the spouse is blind
  2-34        at the close of the taxable year.  For the purposes of
  2-35        this subparagraph, the determination of whether the
  2-36        taxpayer or the spouse is blind shall be made at the
  2-37        close of the taxable year except that, if either the
  2-38        taxpayer or the spouse dies during the taxable year,
  2-39        the determination shall be made as of the time of the
  2-40        death;".



                                 -2- (Index)

                                                  LC 18 6398

                         SECTION 3.

  3- 1  This Act shall become effective upon its approval by the
  3- 2  Governor or upon its becoming law without such approval and
  3- 3  shall be applicable to all taxable years beginning on or
  3- 4  after January 1, 1995.

                         SECTION 4.

  3- 5  All laws and parts of laws in conflict with this Act are
  3- 6  repealed.







































                                 -3- (Index)