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HB 361

CRIMINAL LAW-TECH

104th Regular Session Introduced by Chris Welch

House Bill 361 exempts up to $35,000 of retirement income from state taxes for military retirees, providing financial relief to those under 62 and their families.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 361

Summary of House Bill 361

Bill Number: HB 361
Title: Income tax; exempt all retirement income received as retirement benefits in the armed forces of the United States or the reserve components
Status: House Second Readers
Introduced: February 10, 2025
Classification: Bill

Purpose and Intent

House Bill 361 aims to amend the income tax laws in Georgia to provide a tax exemption for retirement benefits received by individuals who have served in the armed forces of the United States or its reserve components. The intent of the bill is to offer financial relief to military retirees by excluding a portion of their retirement income from state income tax.

Key Provisions

  • Tax Exemption Details:

    • The bill proposes to exempt up to $17,500 of retirement income received by individuals under the age of 62 from military service.
    • An additional $17,500 exemption is available for those who have Georgia earned income exceeding $17,500.
    • For married couples filing jointly, each spouse can individually claim the exemption, allowing for a potential total exemption of $35,000 if both qualify.

  • Amendments to Existing Law:

    • The bill revises Code Section 48-7-27 of the Official Code of Georgia Annotated, specifically addressing the computation of taxable net income.
    • The proposed changes will not affect other existing adjustments to net income provided under different paragraphs of the same subsection.

Affected Parties

  • Military Retirees: The primary beneficiaries of this bill are individuals who have retired from active duty in the armed forces or reserve components, particularly those under 62 years of age.
  • Married Couples: The bill also impacts married couples where both spouses are eligible for military retirement benefits, allowing for a higher combined tax exemption.

Procedural Aspects

  • Effective Date: The provisions of this bill are set to take effect on July 1, 2025, and will apply to all taxable years beginning on or after January 1, 2026.
  • Legislative Timeline:
    • The bill was introduced and placed in the House Hopper on February 10, 2025.
    • It was read for the first time on February 11, 2025, and is currently in the House for second reading as of February 12, 2025.

Conclusion

House Bill 361 represents a significant step towards providing tax relief for military retirees in Georgia. By exempting a substantial portion of their retirement income from state taxes, the bill acknowledges the service and sacrifices made by members of the armed forces. If enacted, it could have a meaningful impact on the financial well-being of military families in the state.

Compiled from official sources — confirm details with the bill’s official record.

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