State of Georgia: New Law Provides Senior Income Tax Cut, and Eliminates State Portion of Property Tax

House Bill 1055, a bill filed in the State of Georgia General Assembly seeking to eliminate taxes on retirement income for senior citizens and the state portion of homeowner’s property taxes, is now a law after Georgia Governor Sonny Perdue signed it on May 10, 2010.

The legislation also adjusts fees to help cover the actual costs of the services for which they are levied and includes a 1.45 percent hospital provider payment that will allow the state to draw down additional federal dollars and increase Medicaid reimbursements to hospitals and other providers.

HB 1055 also eliminates the state portion of homeowners’ property taxes, an idea unveiled by Governor Perdue during his 2008 State of the State address. The two tax cuts will provide almost $400 million in tax relief when fully implemented. The tax reductions will be phased in over five years beginning in 2012.

The bill is effective immediately.  The tax cut is expected to benefit more than 300,000 Georgians.

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