Gov. Brian Kemp is set to sign a pair of pared-down tax bills Monday that fell short of sweeping Republican promises but would still deliver significant savings in an election year.
Kemp’s office notified lawmakers Thursday that he plans to sign House Bill 463 and Senate Bill 33, ending weeks of suspense over two measures that were top priorities for Republican legislative leaders.
His office didn’t immediately comment, but the governor framed the measures as part of a broader affordability push during a campaign stop in Demorest for U.S. Senate candidate Derek Dooley.
“Right now, we’re in the process of sending tax refund checks back to people for the fourth year in a row to put more money in their pocket. We suspended the motor fuel tax,” Kemp said. “We just did another tax cut this year that we will probably be signing here in the next few days.”
Republican leaders in the state Senate began the year by promising to end Georgia’s income tax. House Republicans countered with a proposal to eliminate homestead property taxes.
Neither side got what they wanted.
House Bill 463 would cut Georgia’s income tax rate to 4.99% this year and to 3.99% over eight years if the state meets certain financial benchmarks. It also would raise the standard deduction by 25% and eliminate some tax breaks to help offset the cost, though not nearly as many as originally promised.
Senate Bill 33 would limit annual property tax assessment increases to the rate of inflation. It would also allow city and county governments to raise sales taxes and use the extra money for homestead property tax relief.
Opponents, including most Democrats, say the income tax proposal primarily benefits wealthy Georgians and it would blow a $6.5 billion hole in the state budget over time.
State income tax collections have remained steady in recent years despite a series of rate cuts. The governor’s office reported Thursday that individual income tax collections are up 2.5% to date in fiscal year 2026 over the same period last year.
Opponents of the property tax proposal say it will decimate local school and government budgets. The scaled-back property tax proposal was approved in the final hours of the legislative session despite concerns that it is illegal. The Georgia Constitution says bills that raise revenue must begin in the House. But the property tax bill that passed originated in the Senate.
“Georgia’s Constitution could not be more clear that all bills for raising revenue must originate in the House of Representatives,” said state Rep. Scott Holcomb, D-Atlanta. “I look forward to hearing Gov. Kemp’s explanation.”
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