The State of Georgia has $6.6 billion in surplus cash and lawmakers are planning to use some of that money to provide a one-time tax rebate for the resident.
One-Time Tax Rebate To Georgians
In August, Governor Brian Kemp approved the $350 for Georgians and hoping that some residents can get another round of stimulus money from the state. In 2022 Georgia has a budget year in June with $6.6 billion and in this 2023 session which is set to start next week, Kemp and lawmakers are manifesting a plan to use the extra funds over $3 billion to give a one-time tax rebate to Georgians. The Lawmakers have not yet announced any specific spending plans for the remaining $3 billion according to 24/7 Wall news.
However, Kemp aims to use the remaining funds. His first motive is to use the $1.7 billion to replace the revenue that the state hasn’t collected on gasoline and diesel taxes since March. Next week, the state will start taxing gasoline at 29.1 cents per gallon and diesel at 32.6 cents per gallon.
Moreover, Gov. Kemp plans to issue state income tax rebates from the surplus money, similar to the $1.1 billion in payments issued last year. Lastly, Kemp also plans to revive the property tax rebate, which was abolished in 2009. Homeowners would save approximately $500 a year if the property tax refund were reinstated but it would cost roughly $1 Billion.
The Surplus Money Other Uses
Lawmakers plan to boost Georgia’s rainy-day fund and change the law’s maximum fund to 15% of tax receipts. This initiative could help the state anticipate future bumps. The state’s income tax reduction will escalate on January 1, 2024, and there might be additional funds to utilize.
These tax cuts are predicted to drop the state revenue by $450 million during the first year. Some lawmakers are also considering using surplus money about paying debts. Additionally, the state would also be required to spend more on the state-federal Medicaid health insurance program. The enhanced federal payments will start to decrease on March 31, costing Georgia hundreds of millions.