Georgia’s new deal
State tax reform bill could affect many local residents
Many Newton County residents will be affected by changes coming to Georgia’s tax code, after the Georgia General Assembly overwhelmingly passed its tax reform bill last week.
Multiple measures in H.B. 386 could have sweeping affects for residents by increasing the state income tax exemption for married couples by $2,000, doing away with the annual “birthday tax” for vehicles purchased after March 1, 2013, requiring some online retailers to collect sales tax and reinstating the sales tax holiday for school supplies and energy-efficient items.
The bill, if signed by Gov. Nathan Deal, is expected to make Georgia more competitive in its efforts to attract and retain industry and could lower many individuals’ tax burdens, but it’s also expected to hurt local tax revenues, which could lead to either higher local tax rates or a reduction in services.
Marriage tax exemption
Married couples will now get a larger state tax exemption just for being married. Currently, couples are able to exempt, or avoid being taxed, on $5,400 when they file their taxes jointly, but this bill will increase the state exemption
by $2,000 to $7,400.