Property Tax Rates - Phase out of state ad valorem tax levy L. 2010, H1055, effective 05/12/2010, amends the amount of the state ad valorem tax levy by gradually phasing it out over a period of time. For tax year 2011, the levy will be 0.25 mills; for 2012, 0.2 mills; for 2013, 0.15 mills; for 2014, 0.1 mills; for 2015, 0.05 mills, and for tax years beginning 2016, there will be no levy for state taxation. PERSONAL INCOME TAX—Phase out of tax on retirement income. The retirement income includes interest income, dividend income, net rental income, capital gains income, pensions, annuities, royalties, and earned income up to $4,000. It does not include wages, salaries, tips, net business income, and earned income in excess of $4,000. Part-year or nonresidents must prorate the exclusion. Distributions from an IRA would be retirement income if you meet the age 62 and/or disability requirements. Therefore a distribution upon an IRA conversion to a Roth would not likewise be retirement income subject to the exclusion.  L. 2010, H1055 , effective 05/12/2010, provides for a complete exclusion of certain retirement income from Georgia taxable net income over a period of time. Starting with the 2012 tax year, the exclusion will be $35,000 for each taxpayer who is 62 but less than 65 years of age, or who is permanently and totally disabled. The exclusion remains constant for these categories but increases for those who are 65 years or older during any part of the year as follows: $65,000 in 2012, $100,000 in 2013, $150,000 in 2014, $200,000 in 2015, and a total exclusion of all retirement income from any source in the year 2016.