The tax cut would benefit more than 300,000 Georgians and make Georgia a more attractive location for retirees, according to a news release from the Governor’s office.
House Bill 1055 also eliminates the state portion of homeowner’s property taxes, adjusts fees to help cover the actual costs of the services for which they are levied, and includes a 1.45% hospital provider payment that will allow the state to draw down additional federal dollars and increase Medicaid reimbursements to hospitals and other providers.
“Signing this bill ensures a balanced budget and lays the groundwork for economic recovery,” said Perdue, in the news release. “We are creating an environment that encourages seniors to spend their retirement years and dollars in Georgia. We are also finally getting the state completely out of the property tax business and at the same time providing property tax relief for nearly all Georgians.”
The two tax cuts will provide almost $400 million in tax relief when fully implemented. They will be phased in over five years beginning in 2012.