Story perspectives

Kemp signs tax bills, creates sales-tax option, lowers income tax

5/12/2026

Summary

Story summary

Governor Brian Kemp signed House Bill 463 and Senate Bill 33 on May 11 2026, creating a 1 % sales-tax option to fund homestead exemptions after voter approval in 2028.
The income-tax rate drops to 4.99 % on Jan. 1 2026, with possible annual 0.125 % cuts toward a 3.99 % floor if revenue benchmarks are met.
Democratic legislators say the bills may breach the constitution’s House-origin rule for revenue measures and could shrink local school and city budgets.

History

Historical Context

In 1995 Georgia raised its sales tax to 5.6% under Governor Zell Miller, producing $1.2 billion for schools. The shift echoes the early-2000s Bush tax cuts, which cut rates and dropped the federal revenue share from 20.9% in 2000 to 16.3% in 2004, illustrating how tax changes alter funding and spark partisan fights. Governor Brian Kemp’s 2026 tax plan follows that pattern, drawing Democratic constitutional objections.

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Story summary

Governor Brian Kemp signed House Bill 463 and Senate Bill 33 on May 11 2026, creating a 1 % sales-tax option to fund homestead exemptions after voter approval in 2028.
The income-tax rate drops to 4.99 % on Jan. 1 2026, with possible annual 0.125 % cuts toward a 3.99 % floor if revenue benchmarks are met.
Democratic legislators say the bills may breach the constitution’s House-origin rule for revenue measures and could shrink local school and city budgets.

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