ATLANTA, Ga. (Atlanta News First) — Bills to lower Georgia’s state income tax became one step closer to law Thursday after passing a vote in the state Senate.

Senate Bills 476 and 477 would lower the state income tax rate from 5.19% to 4.99% for personal filers. Senate Majority Leader Jason Anavitarte said it would “position the state to completely eliminate the state income tax.”

The Senate Special Committee on Eliminating Georgia’s Income Tax began meeting last year and delivered its report on Jan. 7.

Georgia’s income taxes currently generate about $20 billion in revenue for the state.

Georgia already has the seventh-lowest tax burden in the country, with residents paying an average of $3,009 a year in state and local taxes, according to the Tax Foundation. That includes $1,102 in sales taxes and $1,433 in income taxes.

An analysis by the Georgia Budget and Policy Institute found the state would need to impose a 12% state sales tax — tripling the current 4% rate — to generate the same amount of revenue. Combined with local taxes, the statewide average sales tax would rise to 15.4%.

The same report estimates that the change would raise taxes for the vast majority of Georgians. The lowest-income 20% of households — about 1 million filers making under $25,600 — would see an average tax increase of $800 a year. Households earning up to $153,000 would also see annual increases averaging $963. Only those earning above $153,000 would see a net tax cut, with the largest benefits going to the top 1% of earners.

The bills still need to pass the Georgia House of Representatives.

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