Georgia House Cuts Proposed Tax Rebates from State Budget Bill

Surplus funds recommended for property tax relief instead of direct rebates

Published on Feb. 6, 2026

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The Georgia House of Representatives has voted to approve an amended state budget bill that cuts the proposed $1.2 billion tax rebates from Governor Brian Kemp's original proposal. Instead, the House bill recommends using the surplus funds to lower property taxes through the Homeowner Tax Relief Grant program.

Why it matters

This move by the Georgia House reflects an ongoing debate in the state legislature over how to best utilize the state's budget surplus, with some lawmakers favoring direct tax rebates to residents while others prioritize property tax reform as a way to provide long-term relief.

The details

Governor Kemp had proposed a fourth year of $250 individual and $500 married couple tax rebates, which would have returned over $7.5 billion to Georgia taxpayers over the last four years. However, the House-amended budget bill instead recommends allocating $850 million of the surplus towards the Homeowner Tax Relief Grant program to lower property taxes. Some House members have even proposed eliminating property taxes entirely by 2032.

  • On February 6, 2026, the Georgia House of Representatives voted to approve House Bill 973, which amends the governor's state budget.
  • In his State of the State address last month, Governor Kemp proposed the $1.2 billion tax rebate program.

The players

Brian Kemp

The Governor of Georgia who proposed the $1.2 billion tax rebate program.

Georgia House of Representatives

The legislative body that voted to approve the amended state budget bill that cuts the proposed tax rebates in favor of property tax relief.

Georgia Senate

The other legislative chamber that has its own bill focused on putting a cap on property taxes.

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What they’re saying

“'With this rebate, my administration and this General Assembly will have returned over $7.5 billion dollars in surplus revenue to the taxpayers of our state over the last four years.'”

— Brian Kemp, Governor of Georgia (wsbtv.com)

What’s next

The Senate will now vote on its own version of the amended state budget, which could potentially add the tax rebates back in. The Senate's bill would then be sent to the House for review.

The takeaway

This debate over how to best utilize Georgia's budget surplus highlights the ongoing tension between providing direct tax relief to residents versus investing in longer-term property tax reform. The final outcome will have significant implications for Georgia taxpayers.