HB 9 - Income tax; annual adjustments; Consumer Price Index

First Reader Summary

A BILL to amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to imposition, rate, computation, and exemptions regarding state income taxation, so as to provide for annual adjustments with respect to the taxable net income brackets applicable to individual income taxpayers and the amount of certain exemptions and deductions; and for other purposes.

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HB 9                                               LC 18 7710 
 
 
 
 
 
 
                        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 state income taxation, 
  1- 4  so as to provide for annual adjustments with respect to the 
  1- 5  taxable net income brackets applicable to individual income 
  1- 6  taxpayers and the amount of certain exemptions and 
  1- 7  deductions; to provide an effective date; to provide for 
  1- 8  applicability; to repeal conflicting laws; and for other 
  1- 9  purposes. 
 
  1-10       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-11                           SECTION 1. 
 
  1-12  Article 2 of Chapter 7 of Title 48 of the Official Code of 
  1-13  Georgia Annotated, relating to imposition, rate, 
  1-14  computation, and exemptions regarding state income taxation, 
  1-15  is amended by adding a new paragraph at the end of 
  1-16  subsection (b) of Code Section 48-7-20, relating to income 
  1-17  tax rates, to be designated paragraph (3), to read as 
  1-18  follows: 
 
  1-19      "(3) For taxable years beginning in calendar year 1998 
  1-20      and future calendar years, the amounts enumerated in the 
  1-21      Georgia Taxable Net Income brackets in paragraph (1) of 
  1-22      this subsection with respect to individual income 
  1-23      taxpayers shall be annually adjusted by the commissioner 
  1-24      by the same percentage as the previous year's increase 
  1-25      or decrease in the Consumer Price Index for all urban 
  1-26      consumers published by the Bureau of Labor Statistics of 
  1-27      the Department of Labor.  The tax calculated according 
  1-28      to such rate shall be rounded to the nearest $10.00." 
 
  1-29                           SECTION 2. 
 
  1-30  Said article is further amended by adding a new paragraph at 
  1-31  the end of subsection (b) of Code Section 48-7-26, relating 
  1-32  to personal exemptions, to be designated paragraph (4), to 
  1-33  read as follows: 
 
 
 
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  2- 1      "(4) For taxable years beginning in calendar year 1998 
  2- 2      and future calendar years, the deduction and exclusion 
  2- 3      amounts provided for in this subsection shall be 
  2- 4      annually adjusted by the commissioner by the same 
  2- 5      percentage as the previous year's increase or decrease 
  2- 6      in the Consumer Price Index for all urban consumers 
  2- 7      published by the Bureau of Labor Statistics of the 
  2- 8      Department of Labor.  Such deduction and exclusion 
  2- 9      amounts shall be rounded to the nearest $10.00." 
 
  2-10                           SECTION 3. 
 
  2-11  Said article is further amended by adding a new paragraph 
  2-12  immediately following paragraph (1) of subsection (a) of 
  2-13  Code Section 48-7-27, relating to the computation of taxable 
  2-14  net income, to be designated paragraph (1.1), to read as 
  2-15  follows: 
 
  2-16      "(1.1) For taxable years beginning in calendar year 1998 
  2-17      and future calendar years, the deduction amounts 
  2-18      provided for in subparagraphs (A) through (E) of 
  2-19      paragraph (1) of this subsection shall be annually 
  2-20      adjusted by the commissioner by the same percentage as 
  2-21      the previous year's increase or decrease in the Consumer 
  2-22      Price Index for all urban consumers published by the 
  2-23      Bureau of Labor Statistics of the Department of Labor. 
  2-24      Such deduction amounts shall be rounded to the nearest 
  2-25      $10.00." 
 
  2-26                           SECTION 4. 
 
  2-27  This Act shall become effective upon its approval by the 
  2-28  Governor or upon its becoming law without such approval. 
 
  2-29                           SECTION 5. 
 
  2-30  All laws and parts of laws in conflict with this Act are 
  2-31  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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