Kemp Signs Income Tax Refund Bill Into Law
Georgia residents will receive hundreds of dollars as Gov. Brian Kemp signs a bill that uses more than $1 billion of surplus government funds to provide income tax refunds for state residents who filed returns in 2020 and 2021 according to a published post by CNN.
As the Republican-controlled legislature passes the legislation, it offers the usage of unused government funds to give out income tax refunds for the residents of the state. Kemp, a Republican, who is up for reelection this year stated that when the government takes in more than it needs, those dollars should be returned to the taxpayer.
Georgia has benefitted from strong tax revenues, like many states, and resulted in a build-up of surplus revenue. Nearly $20 billion in taxes was collected from the start of the fiscal year in July to the end of February. This shows an increase of 16% from the same period a year earlier. Individual and corporate income taxes and sales taxes have grown by double digits so far this fiscal year.
The Legislation that Led to Income Tax Refund Law for Georgians
Kemp and state lawmakers also recently suspended the state’s 29.1-cent tax on gas and 32.6-cent tax on diesel, through the end of May which resulted in a reason why the tax refunds are not the only break Peach State residents will receive.
As a result of this move, states across the country are trying to mirror Kemp’s legislation to provide relief to their residents in the face of inflation. Democratic Gov. Gavin Newsom of California already has proposed using billions in surplus state funds to dole out $400 debit cards and free public transit for 3 months to help Californians offset the high cost of gas.
But as the move capitalizes on helping the state’s residents, former Sen. David Perdue, who is challenging Kemp in the Republican primary, blasted the Georgia governor’s move as an “election year giveaway and “a desperate attempt to get votes.” The primary is set for May 24, and former President Donald Trump will campaign for Perdue on Saturday.