Governor Perdue Praises House Passage of Teacher Tax Cut

Bill will Provide Teachers with $250 Tax Deduction for School Supplies

ATLANTA, GA - Governor Sonny Perdue issued today the following statement praising the unanimous vote by the State House on his proposed teacher tax cut (HB263):

“Georgia teachers work hard to educate their students, even spending their own money on school supplies. This tax cut recognizes teachers’ dedication and sacrifice and illustrates our commitment to providing them with the resources they need to succeed.”

Under HB 263, teachers will be given a $250 per year tax deduction for the purchase of school supplies.

Each year the Georgia General Assembly adopts the Internal Revenue Code (IRC) as it exists on January 1 of the applicable year. The state is currently working from the IRC that existed as of January 1, 2004, which does not include the recently enacted Working Families Tax Relief Act of 2004 (WFTRA).

Governor Perdue committed to extending the federal Tax Cut for Teachers to state income taxes in October 2004. The teacher tax deduction accounts for a $1.5 million tax cut in the Governor’s budget recommendation. HB 263 adopts the most recent IRC for 2005 with a proposal that the $250 deduction for teacher classroom expenses be made retroactive to include the 2004 tax year in addition to 2005.

Governor Perdue's action was prompted by the October 4, 2004 signing of the WFTRA by President Bush. The intent of WFTRA is to prevent federal income tax increases in 2004 and 2005 by extending certain tax provisions such as the deduction for classroom supplies purchased by teachers.