Download - Georgia State

Georgia StateUniversityAndrew Young School of Policy

Studies

Fiscal Research Center

Introduction and Overview

Sally Wallace


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Purpose

• Learn in some detail how the property tax works in Georgia

• Review the growth in property tax and policy alternatives that address that growth: assessment limitations, caps, exemptions, etc.

• Share experiences from other states with practitioners


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Overview

• What constitutes our property tax base?

• How has the property tax grown over time?

• Growth relative to population, income, U.S.

• Base component of growth in property tax revenue

• Burden of property tax in Georgia


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Which level of government?

TABLE 1. PROPERTY TAX LEVIES BY TYPE OF GOVERNMENT Type of Government

----------------Share----------------

1996 2007 State 0.88% 0.81%

School Systems 58.42 56.90

Counties 26.68 26.40

Municipalities 7.83 7.07

Special Districts 6.20 8.82


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Where does it come from?

TABLE 2. GROSS STATE PROPERTY TAX BASE BY COMPONENTS

--------------1996------------- --------------2007------------- Component

Growth Rate / Total Growth

Rate Component Value Share Value Share

Residential $67,674,986,920 43.2% $204,755,657,354 54.8% 1.46

Agricultural 7,094,619,575 4.5% 13,275,004,777 3.6% 0.63

Conservation Use 1,508,389,803 1.0% 11,403,223,872 3.1% 4.74

Commercial 38,756,645,635 24.8% 82,962,501,498 22.2% 0.82

Industrial 15,255,708,777 9.7% 23,542,025,082 6.3% 0.39

Utility 9,759,082,520 6.2% 11,962,960,904 3.2% 0.16

Motor Vehicle 14,541,680,241 9.3% 22,529,507,106 6.0% 0.40

Miscellaneous 1,945,974,252 1.2% 2,913,045,560 0.8% 0.36

Total Gross Digest $156,537,087,723 $373,343,926,153


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Have revenues grown?


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How much/how fast?


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Adjusting for inflation


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Relative to personal income


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Relative to the U.S.


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What has happened to the base?


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Base per capita


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Base relative to income


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Volatility of base growth


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Relative position in state-local finances

1991-92 2005-06

Own Source Revenue (000s) 18,197,816 44,402,258

All taxes 12,446,168 31,025,457

Property tax 3,734,111 8,946,070

Property Tax/OSR 20.52% 20.15%

Property Tax/All taxes 30.00% 28.83%


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Georgia relative to US

Levels and Rank 2005

Property tax per capita Property tax per

Total state-local taxes rank

$100 personal income

Level Rank

Level Rank

Per capita

Per $100

Georgia $899 33

2.91 28

38 41 US $1,132

3.28


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Summing up

• Property tax is an important revenue source, particularly for school districts and counties

• Tax revenues have grown:– Relative to population and income– Relative to other taxes, not much change

• Continued interest in the tax, its growth, and its future