Georgia Governor Signs Bill That Will Phase Out Tax on Retirement Income

ATLANTA—Taxes on retirement income for senior citizens age 65 and over will be eliminated by 2017, along with the state’s portion of homeowner property taxes, under a bill (H.B. 1055) signed by Georgia Gov. Sonny Perdue (R) May 12.

The bill also includes a 1.45 percent tax on hospital revenue, which will raise $169 million that, along with federal matching funds, will help close a projected $608 million deficit in the state’s Medicaid budget.

Budget Will Be Balanced.

Perdue said that signing the bill ensured that the state’s fiscal year 2011 budget will be balanced and lays the ...