Special state income tax refunds paid from Georgia’s historic budget surplus could be on their way to taxpayers in six to eight weeks after Gov. Brian Kemp signed the $1.1 billion refund plan into law on Wednesday.
In brief remarks at the signing of the bill, Republican Kemp hailed lawmakers for approving “this major facilitation that we’re going to do to get hard-working Georgians giving back over a billion dollars of their hard-earned money, which, frankly, we’re giving back.” I don’t need to have done this year.”
House Bill 1302 provides a rebate of $250 for single people, $375 for single people living with dependents, and $500 for married couples applying together. The refund would only be paid to individuals who filed tax returns for both tax year 2020 and tax year 2021.
People who have already filed their 2021 taxes, which are due April 18 without an extension, would get money back later in a separate payment. People who haven’t already applied can see the money go toward the refund or payment that’s due, depending on how quickly the state Treasury Department and tax preparers can make changes.
The payments come as Kemp and lawmakers seek re-election. Kemp on Friday signed legislation suspending Georgia’s fuel tax until May 31, a measure unopposed by state legislatures.
Kemp said Wednesday the gas tax holiday and income tax refunds will help people deal with inflation and high prices, blaming federal policy for the problem.
“We can’t solve all these problems up there, but we could do our part to help people here deal with it, and that’s what we’re doing today,” Kemp said.
Income tax refunds were originally estimated at $1.6 billion, but that amount was revised down to $1.1 billion in a March 9 estimate. The fuel tax exemption, which offers tax breaks including the state’s 29.1 cents a gallon on gasoline, began moving forward around the same time and is estimated to cost up to $400 million in lost revenue. Kemp plans to use additional surpluses, including the money left over from the lower reimbursement estimate, to make up the shortfall that the gas tax exemption will cause in the state’s road construction fund.
Georgia posted a surplus of $3.7 billion for the fiscal year ended June 30, filling its rainy day fund to the legal limit and leaving $2.3 billion in additional unrecognized surplus that Kemp used for used the income tax refunds and the gas tax holiday.
It’s part of a larger burst of state spending, including $5,000 increases for state and university employees, $2,000 increases for teachers and a proposed permanent $1.05 billion cut in state income taxes -Dollar.
The law states that the refunds would be made against the taxpayer’s 2020 tax liability. No one could get back more money than they paid in taxes that year.
The state will first use the refund to offset current taxes due and then issue refunds to taxpayers, usually through a direct deposit into the taxpayer’s bank account. However, it would continue to absorb the repayments of those who owe debts, such as B. delinquent child support payments.
A refund will be credited or issued automatically for anyone filing a tax return for 2020 and 2021, with no further action required. Individuals who have already filed tax returns for 2021 do not need to refil their taxes.
The refund will not qualify as taxable income for state purposes, but Revenue Commissioner Robyn Crittenden previously said it would qualify as taxable income for federal income taxes.
Follow Jeff Amy on Twitter at http://twitter.com/jeffamy.
