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SB 387

Revenue and Taxation; state income tax in its entirety; repeal

2025-2026 Regular Session Introduced by Colton Moore

Bill would eliminate Georgia's entire state income tax system, removing ~$20B in annual revenue with no identified replacement funding or implementation plan.

Senate Read and Referred
#revenueandtaxation
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Bill Summary · SB 387

Legislative bill overview

SB 387 proposes the complete repeal of Georgia's state income tax system. This would eliminate all personal and corporate income tax collections that currently fund a substantial portion of state government operations, education, and services. The bill provides no alternative revenue mechanism or implementation timeline.

Why is this important

Georgia's state income tax generates approximately $20+ billion annually—roughly 50% of the state's general revenue fund. Eliminating it without replacement would create a massive budget shortfall affecting education funding, healthcare, infrastructure, and state employee salaries. This represents one of the most fiscally consequential proposals possible at the state level.

Potential points of contention

  • Revenue replacement uncertainty: No specified alternative funding sources (sales tax increases, property tax adjustments, federal subsidies, or spending cuts) are identified, creating fiscal uncertainty about government operations
  • Distributional impact: Lower-income households typically pay less income tax but rely more heavily on state-funded services; sales tax or other alternatives would shift the burden differently across income levels
  • Economic transition effects: Sudden elimination could trigger business relocation concerns, workforce impacts at state agencies, and bond rating downgrades affecting borrowing costs
  • Implementation feasibility: No timeline or transition plan provided for converting tax systems and updating state budgets

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

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