Georgia governor proposes $1B tax rebate as state Legislature urged to tap hefty surplus

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Gov. Brian Kemp announces plans for a $1 billion income tax rebate for Georgians, which could return up to $500 to households in the state.

Credit: Ross Williams / Georgia Recorder

Georgians could be getting a little extra back in their tax rebates next year.

Gov. Brian Kemp announced plans for a new tax rebate of $250 for single tax filers, $375 to head-of-household filers or $500 to married couples filing jointly, adding up to $1 billion, according to the governor’s office.

“That rebate means helping pay the rent or a car payment,” Kemp said at a press conference at the state Capitol Tuesday. “It means school clothes for their kids or a shopping cart full of groceries. It means paying down credit card debt, which people are living off of thanks to bad national policies, and many other possibilities for the people of our state.”

The proposal, which would be the third rebate package of Kemp’s time in office, comes as Georgians have already begun voting in next month’s presidential election.

After the three rebates, multiple state gas tax suspensions and other programs, Kemp’s administration boasts refunding Georgia taxpayers over $6.6 billion – including a combined $2 billion income and home and income tax rebate and a suspension of the gas tax during his re-election campaign.

Kemp was joined at his announcement by top Republican lawmakers, including Lt. Gov. Burt Jones and House Speaker Jon Burns, who both spoke in favor of the plan and pledged to help shepherd it through their respective chambers when the General Assembly convenes in January.

“Our strong conservative leadership and strategic fiscal policies have created a historic — I believe in the neighborhood of $19 billion — budget surplus,” Burns said. “And we’re proud that we’ve been able to continue investing in everything from health care and education to infrastructure and workforce development, all while cutting taxes and saving Georgia families and businesses millions of dollars.”

Democrats have argued that the state’s surplus would be better used for large-scale programs to benefit state residents, like improving roads, building out rural broadband, or expanding Medicaid.

“While I think it’s fair to give a tax refund to hardworking Georgians and offer some economic relief, I do object to framing these funds as being in ‘surplus,’ as that indicates this is money left over after having already fulfilled our responsibilities, which we have not,” said state Rep. Michelle Au, a Johns Creek Democrat.

Au, a physician and outspoken advocate of Medicaid expansion, said some of the economic pressures facing Georgians cannot be fixed by a one-time payment.

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State Rep. Michelle Au

Credit: Ross Williams / Georgia Recorder

“Personally, I’d say a sound investment of our tax dollars would be to lower the state’s high number of patients without health insurance, as many uninsured families are just one health emergency away from financial ruin,” she said. “A one-time payout offers some transient marginal relief, but investing in the health of a state pays dividends. I will also note that fully expanding Medicaid under the provisions of the Affordable Care Act would cost the state far less than the $1 billion earmarked for this refund.”

Georgians will not need to take any extra steps to receive the refunds other than filing their income tax returns.

Kemp said he has been in meetings with the state budget team about spending some of its surplus on relief for residents affected by Hurricane Helene

“They’re looking at what we did for Hurricane Michael, looking at ideas that we’re hearing from people on the ground, so we’re starting to dig into that now,” he said. “I will say the one good thing about the position we’re in versus when Michael hit is our fund balances are so much better than they were back then.”

“I can assure you, I think I can speak for everybody up here, but we look to move quickly, the first part of the legislative session, on the storm packages,” he added.

This story comes to GPB through a reporting partnership with Georgia Recorder.