There will be a complete exclusion of certain retirement income from Georgia taxable net income over a period of time. Starting with the 2012 tax year, the exclusion will be $35,000 for each taxpayer who is 62 but less than 65 years of age, or who is permanently and totally disabled. The exclusion remains constant for these categories but increases for those who are 65 years or older during any part of the year as follows: $65,000 in 2012, $100,000 in 2013, $150,000 in 2014, $200,000 in 2015, and a total exclusion of all retirement income from any source in the year 2016. H1055
REPEAL AND REPLACEMENT OF SALES TAX ON MOTOR VEHICLES
Sales and use tax will continue to apply to leases or rentals of motor vehicles. Ga. Code Ann. §48-5B-1(b)(1)(A)Ga. Code Ann. §48-5-441.1; as enacted by L. 2012, H 386, Act 607 § 1-4.]Ga. Code Ann. §48-8-3(92)Effective March 1, 2013, sales and use taxes (other than special district transportation sales and use taxes) will no longer be imposed on motor vehicles titled in Georgia. Instead, a state title fee and a local title fee will be imposed which will be alternative ad valorem property taxes as authorized by Art. VII, §1, Paragraph III (b)(3), of the Georgia Constitution. Pursuant to the constitutional provision, motor vehicles that are subject to the state and local title ad valorem tax will be classified as a separate and distinct class of tangible personal property for ad valorem property tax purposes.