Kemp signs tax cuts with conditions

(The Center Square) – Gov. Brian Kemp signed a bill Monday that reduces the state income tax rate by 0.125% until it reaches 3.99%, but it comes with a condition.

House Bill 463 requires the state to meet revenue benchmarks, or the income tax rate will not be lowered.

One of the three benchmarks included in the bill requires the governor’s revenue estimate to increase by at least 3%. The tax cuts could also be delayed for a year if the prior year’s fiscal net revenue collection is not higher than the collections in each of the three preceding years.

The third condition halts the tax cut if the Revenue Shortfall Reserve lacks the funds to cover the losses, according to the bill.

Kemp, in his final months as governor, said the bill fulfills his promise to slash the income tax rate below 5%. Georgia’s flat tax rate is 5.19%. The legislation reduces it to 4.99% beginning with the current tax year.

“We’ve remained the No. 1 state for business for a historic 12...