Why Georgia lawmakers keep sending you money
Gov. Brian Kemp and Georgia lawmakers this week handed out some $1.5 billion in tax relief, part of a yearslong drive to return money to taxpayers that has taken on new urgency amid rising prices.
On Friday the governor signed a law that will give Georgians income tax rebates of up to $500, plus a separate measure that will suspend the state’s gas tax for 60 days. That’s on top of $850 million in property tax relief and $2,000 bonuses for state employees included in Georgia’s amended 2026 budget.
More election-year tax relief may be coming. In the final days of the legislative session lawmakers are still negotiating additional income and property tax cuts.
“I reflect back to the start of the legislative session when politicians on the national level suddenly decided to start talking about affordability,” Kemp said as he signed the laws, surrounded by lawmakers eager to show their support. “Here in Georgia, we don’t just talk, we act.”
Georgians have seen years of elevated inflation and, more recently, a stagnating job market. Now gas prices have spiked amid the war in Iran. That has supercharged legislators’ focus on affordability issues.
Gas prices in Georgia averaged $3.79 a gallon on Friday — up 40% from a month ago, according to AAA. The measure Kemp signed would suspend the state’s tax of 33 cents per gallon on gas and 37 cents per gallon on diesel. That would put up to $400 million in motorists’ pockets over the next two months.
Georgia is the first state to suspend its gas tax in response to rising prices. The speed with which lawmakers acted — the House of Representatives passed the measure Wednesday, the Senate passed it Thursday and the governor signed it Friday — shows their political sensitivity to rising prices.
It’s an issue that has united Democrats and Republicans at a time when partisan tempers sometimes flare.
“Things are kind of spiraling out of control now. I think this is needed for the people of Georgia,” Senate Democratic Leader Harold Jones II, D-Augusta, said after the vote. “We’re happy to support that.”
The tax rebates are another measure that has gained bipartisan support. House Bill 1000 authorizes income tax rebates to people who filed returns in 2024 and 2025.
Married couples filing jointly will receive an income tax rebate up to $500 later this year. Heads of household will get up to $375, while individual filers and married people filing separately will get up to $250.
The state budget includes $2,000 bonuses for state employees. And it contains $850 million for local governments to provide property tax relief for residents. The average homeowner is expected to get about a $500 reduction on their property tax bill.
Those initiatives are the latest in a series of tax cuts and rebates lawmakers have approved in recent years, including multiple income and property tax rebates, motor fuel tax suspensions and income tax rate cuts. Combined, they have returned some $11.8 billion to taxpayers.
Legislators might approve even more tax relief before the session ends April 2, though the remaining proposals are more controversial.
House Speaker Jon Burns has made a steep reduction in property taxes for homeowners a top priority. Supporters say it would address skyrocketing tax bills that have burdened homeowners.
“Affordability is at the forefront of everybody’s mind — all our citizens,” said state Rep. Shaw Blackmon, R-Bonaire, who is shepherding Burns’ proposal. “The more money they can keep of their own, the more affordable everything is.”
Critics fear the kinds of cuts Burns wants would decimate local school and government budgets and services.
“It’s an impractical solution that would bankrupt certain cities that don’t have commercial corridors,” said state Sen. Sonya Halpern, D-Atlanta. “And it would really put our schools in a lot of trouble because they are funded through property taxes.”
Republicans also are pushing additional income tax rate cuts. Kemp supports a bill to lower the state rate to 4.99% from 5.19% — the latest in a series of cuts. Some Republicans want to go even further, reducing the rate to 3.99%.
Republicans say such cuts are warranted because of the sizable reserves Georgia has accumulated in recent years. Even with the latest tax relief, the state will still have about $8 billion in the bank.
Democrats say reducing the tax rate primarily benefits the wealthy and makes a sales tax increase more likely in the future.
Whatever happens in the remaining days of the session, lawmakers have already approved substantial tax relief. And their appetite for granting such relief may last as long as inflation and the state’s budget reserves persist.
About the Author
David Wickert writes about the state budget, finance and voting issues. Previously, he covered local government and politics in Gwinnett and Fulton counties. Before moving to Atlanta, he worked at newspapers in Illinois, Tennessee, Virginia and Washington.
