Legislature

Taxes and a raise for state retirees still pending on Sine Die

Georgia state lawmakers face a deadline to deliver on big promises on the final day of the 40-day session.
House Speaker Jon Burns (left) and Lt. Gov. Burt Jones celebrate Tuesday's passage of House Bill 1193, which seeks to improve literacy among Georgia schoolchildren. (David Wickert/AJC)
House Speaker Jon Burns (left) and Lt. Gov. Burt Jones celebrate Tuesday's passage of House Bill 1193, which seeks to improve literacy among Georgia schoolchildren. (David Wickert/AJC)
12 hours ago

Property tax relief. Income tax cuts. A cost-of-living raise for state retirees.

Those are just some of the issues still pending on the final day of Georgia’s legislative session. It could be a wild day as lawmakers scramble to deliver on some big promises they’ve made before they head out to campaign during a key election year.

Here’s what you need to know:

Property taxes

Lawmakers have already approved $850 million in property tax relief as part of Georgia’s amended 2026 budget. But House Speaker Jon Burns wants to go further by significantly curtailing taxes for “homestead” properties, or primary single-family residences.

House Bill 1116 would cap the growth of local property tax levies for schools and other local governments at 3% annually or the rate of inflation, whichever is higher. It also would allow schools and governments to use sales taxes to pay for property tax relief.

The Senate approved the latest version of the bill Tuesday. But the chambers are still negotiating a final version.

Income taxes

Lt. Gov. Burt Jones wants to phase out the personal income tax altogether. The Senate has approved two options for reducing taxes that fall substantially short of completely eliminating the tax, but the House has not acted on them.

Meanwhile, Gov. Brian Kemp’s more modest proposal to reduce the income tax rate from 5.19% to 4.99% awaits action in the Senate.

On Wednesday House Speaker Jon Burns said he believes the chambers will agree on property and income tax relief before the session ends.

Elections

How Georgians will vote in the midterms this year is still murky.

Senate Republicans want to switch to hand-marked paper ballots this year. It’s a longtime priority among conservatives who have mistrusted Georgia’s touchscreen voting system following President Donald Trump’s 2020 loss.

Meanwhile, House lawmakers who want to delay a switch have sought to overhaul the system by 2028. The two competing proposals are both in the hands of the House, where either could be considered.

The two chambers will either strike a compromise or face uncertainty over what’s next. The Republican-controlled General Assembly passed a law two years ago requiring Georgia to eliminate QR codes from ballots by July. Some fear a legislative stalemate could force courts to intervene.

Data centers

Some legislators have sought to eliminate a sales tax break for data centers, which has cost the state hundreds of millions of dollars. The Senate has approved a measure to do that. But the House has taken no action.

Last week, the Senate Finance Committee rewrote a House tax bill and replaced it with language that would end the tax breaks sooner for certain data center equipment.

If any of the measures pass, it’s not clear if Kemp will sign them. He vetoed a similar proposal two years ago.

State budget

If they do nothing else, legislators must approve a 2027 budget. Kemp, the House and the Senate have each released versions of the $38.5 billion spending plan. Behind-the-scenes negotiations are expected to produce a final version Thursday.

State retirees will be watching to see whether the final version includes a Senate proposal for a $100 million boost to the Employee Retirement System of Georgia. Supporters say that should be enough to provide retirees a long-sought cost-of-living raise.

About the Authors

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.

Caleb Groves is a general assignment reporter for The Atlanta Journal-Constitution's politics team and a Kennesaw State University graduate.

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