HB19.html

To amend Code Section 48-7-20 of the Official Code of Georgia Annotated, relating to individual income tax rates, tax tables, credit for withholding and other payments, and applicability to estates and trusts, so as to change the computation of the amount of tax imposed by adjusting tax tables´ income brackets to account for the accumulated effect of inflation since 1971; to phase in such adjustment over a three-year period; to provide legislative findings and declarations; to provide an effective date; to provide for applicability; to repeal conflicting laws; and for other purposes.

The General Assembly finds and declares as follows:
(1) The tax tables´ income brackets provided by current law for computing the amount of income tax imposed by this state on individuals are the same as those tax tables´ income brackets enacted in 1971 (Ga. L. 1971, p. 605, Sec. 1);
(2) The accumulated effect of more than a quarter of a century of inflation on individual incomes necessitates establishing a new set of tables for computing individual income tax, with income brackets adjusted to account for such accumulated effect of inflation since 1971; and
(3) The General Assembly intends to phase in such adjustment over a three-year period.

Code Section 48-7-20 of the Official Code of Georgia Annotated, relating to individual income tax rates, tax tables, credit for withholding and other payments, and applicability to estates and trusts, is amended by striking paragraph (1) of subsection (b), which reads as follows:

"(b)(1) The tax imposed pursuant to subsection (a) of this Code section shall be computed in accordance with the following tables:

Over $750.00 but not over
$2,250.00

$7.50 plus 2% of amount over $750.00
Over $2,250.00 but not over
$3,750.00

$37.50 plus 3% of amount over $2,250.00
Over $3,750.00 but not
over $5,250.00

$82.50 plus 4% of amount over $3,750.00
Over $5,250.00 but not over
$7,000.00

$142.50 plus 5% of amount over $5,250.00
Over $7,000.00
$230.00 plus 6% of amount over $7,000.00

Over $500.00 but not over
$1,500.00

$5.00 plus 2% of amount over $500.00
Over $1,500.00 but not over
$2,500.00

$25.00 plus 3% of amount over $1,500.00
Over $2,500.00 but not over
$3,500.00

$55.00 plus 4% of amount over $2,500.00
Over $3,500.00 but not over
$5,000.00

$95.00 plus 5% of amount over $3,500.00
Over $5,000.00
$170.00 plus 6% of amount over $5,000.00

Over $1,000.00 but not over
$3,000.00

$10.00 plus 2% of amount over $1,000.00
Over $3,000.00 but not over
$5,000.00

$50.00 plus 3% of amount over $3,000.00

Over $5,000.00 but not over
$7,000.00

$110.00 plus 4% of amount over $5,000.00
Over $7,000.00 but not over
$10,000.00

$190.00 plus 5% of amount over $7,000.00
Over $10,000.00
$340.00 plus 6% of amount over $10,000.00",
and inserting in lieu thereof the following:
"(b)(1) The tax imposed pursuant to subsection (a) of this Code section shall be computed in accordance with the following tables:
(A) For taxable years beginning on or after January 1, 2002, and prior to January 1, 2003:

Over $1,525.00 but not over
$4,577.00

$15.25 plus 2% of amount over $1,525.00
Over $4,577.00 but not over
$7,630.00

$76.29 plus 3% of amount over $4,577.00
Over $7,630.00 but not over
$10,682.00

$167.88 plus 4% of amount over $7,630.00
Over $10,682.00 but not over
$14,242.00

$289.96 plus 5% of amount over $10,682.00
Over $14,242.00
$467.96 plus 6% of amount over $14,242.00

Over $1,017.00 but not over
$3,052.00

$10.17 plus 2% of amount over $1,017.00
Over $3,052.00 but not over
$5,087.00

$50.87 plus 3% of amount over $3,052.00
Over $5,087.00 but not over
$7,120.00

$111.92 plus 4% of amount over $5,087.00
Over $7,120.00 but not over
$10,173.00

$193.24 plus 5% of amount over $7,120.00
Over $10,173.00
$345.89 plus 6% of amount over $10,173.00

Over $2,033.00 but not over
$6,107.00

$20.33 plus 2% of amount over $2,033.00
Over $6,107.00 but not over
$10,173.00

$101.81 plus 3% of amount over $6,107.00
Over $10,173.00 but not over
$14,242.00

$223.79 plus 4% of amount over $10,173.00
Over $14,242.00 but not over
$20,347.00

$386.55 plus 5% of amount over $14,242.00
Over $20,347.00
$691.80 plus 6% of amount over $20,347.00
(B) For taxable years beginning on or after January 1, 2003, and prior to January 1, 2004:

Over $2,300.00 but not over
$6,903.00

$23.00 plus 2% of amount over $2,300.00
Over $6,903.00 but not over
$11,510.00

$115.06 plus 3% of amount over $6,903.00
Over $11,510.00 but not over
$16,113.00

$253.27 plus 4% of amount over $11,510.00
Over $16,113.00 but not over
$21,483.00

$437.39 plus 5% of amount over $16,113.00
Over $21,483.00
$705.89 plus 6% of amount over $21,483.00

Over $1,533.00 but not over
$4,603.00

$15.33 plus 2% of amount over $1,533.00
Over $4,603.00 but not over
$7,673.00

$76.73 plus 3% of amount over $4,603.00

Over $7,673.00 but not over
$10,740.00

$168.83 plus 4% of amount over
$7,673.00
Over $10,740.00 but not over
$15,346.00

$291.51 plus 5% of amount over $10,740.00
Over $15,346.00
$521.81 plus 6% of amount over $15,346.00

Over $3,067.00 but not over
$9,213.00

$30.67 plus 2% of amount over $3,067.00
Over $9,213.00 but not over
$15,346.00

$153.59 plus 3% of amount over $9,213.00
Over $15,346.00 but not over
$21,483.00

$337.58 plus 4% of amount over $15,346.00
Over $21,483.00 but not over
$30,692.00

$583.06 plus 5% of amount over $21,483.00

Over $30,692.00
$1,043.51 plus 6% of amount over $30,692.00
(C) For taxable years beginning on or after January 1, 2004:

Over $3,075.00 but not over
$9,230.00

$30.75 plus 2% of amount over $3,075.00
Over $9,230.00 but not over
$15,390.00

$153.85 plus 3% of amount over $9,230.00
Over $15,390.00 but not over
$21,545.00

$338.65 plus 4% of amount over $15,390.00
Over $21,545.00 but not over
$28,725.00

$584.85 plus 5% of amount over $21,545.00
Over $28,725.00
$943.85 plus 6% of amount over $28,725.00

Over $2,050.00 but not over
$6,155.00

$20.50 plus 2% of amount over $2,050.00
Over $6,155.00 but not over
$10,260.00

$102.50 plus 3% of amount over $6,155.00
Over $10,260.00 but not over
$14,360.00

$225.75 plus 4% of amount over
$10,260.00
Over $14,360.00 but not over
$20,520.00

$389.75 plus 5% of amount over $14,360.00
Over $20,520.00
$697.75 plus 6% of amount over $20,520.00

Over $4,100.00 but not over
$12,320.00

$41.00 plus 2% of amount over $4,100.00
Over $12,320.00 but not over
$20,520.00

$205.40 plus 3% of amount over $12,320.00
Over $20,520.00 but not over
$28,725.00

$451.40 plus 4% of amount over $20,520.00
Over $28,725.00 but not over
$41,040.00

$779.60 plus 5% of amount over $28,725.00
Over $41,040.00
$1,395.35 plus 6% of amount over $41,040.00"