ALBANY, Ga. (WALB) - Georgia lawmakers are signaling that a draft proposal to eliminate state income tax could be released before lawmakers return to the Capitol next year.

The state would have to replace roughly $20 billion generated by the state’s income tax. The state income tax balances out the tax system and the effects of sales tax and property taxes, so residents generally pay a similar share of what they’ve earned in taxes.

Georgia already has the seventh-lowest tax burden in the country, and replacing the income tax would not be simple. A Georgia Budget and Policy Institute report says Georgia would need a 12% state sales tax — triple the current rate.

With local taxes included, the average sales tax rate statewide would rise to 15.4%.

“And so what we wanted to look at here is how do we replace that $16-19 billion. $16 billion if we’re talking about just the personal income tax, $19 billion if we’re talking about the corporate income tax as well. So, when we look across the country and we look at these other states, states like Florida, Tennessee, Texas, they are reliant on the sales tax, so that is the natural option. We would have to basically triple our sales tax to build enough revenue to replace the income tax,” said Danny Kanso, Director of Legislative Strategy and Senior Fiscal Analyst at Georgia Budget & Policy Institute.

Kanso said nine states that don’t have state income taxes built their revenue systems without a state income tax. He said it is much easier to build a system than to just switch.

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