ATLANTA - Governor Nathan Deal said he is willing to work with lawmakers to reduce state taxes, after reports Georgia residents could face hits to their pocketbook after the overhaul to federal tax laws.
That potential bump in state taxes is a result of the recent federal tax cut that limited or eliminated some deductions Georgians have used in tax years 2016 and 2017, but cannot in 2018.
The announcement came after reports Georgians could pay around $3.6 billion more in taxes over the next five years.
"The remaining portion of reform that has taken place at the federal level and its impact on our state will be dealt with," Governor Deal said, promising legislation to address Georgia residents' future tax liabilities before the end of 2018.
Accountants tell FOX 5, one of the biggest hits to Georgia residents could be how much of their property taxes people can claim on itemized deductions.
"Folks who itemize will not receive the same benefits you received in 2016 and 2017. State and local taxes will be minimized to an aggregate of $10,000," said Sam Carter, managing partner of accounting firm Carter & Company.
Plenty of his clients are among the hundreds of thousands of homeowners in the Metro already paying high property taxes amid ever-rising home prices.
"Most of our clients are going to get hit because they really counted on the itemized deductions," Carter said.
Some accountants tell FOX 5, numerous middle to upper-middle class homeowners in the Metro can easily deduct $20,000 for their 2017 property taxes.
Financial experts do believe the doubled standardized deduction with the new federal tax laws may help numerous individuals, especially people who are single and own a small business.
Other accountants believe federal changes could potentially negatively affect single parents with multiple children, who were previously allowed to claim a $4,050 personal exemption for each dependent.
Deal promises to work with Lt. Governor Casey Cagle, House Speaker David Ralston and members of the Appropriations Committee to create legislation tackling the state tax code.