Tax Policy and Reform
Data Snapshot
With property assessments mailed and tax bills on the horizon, it’s worth looking at exemptions for one of the most vulnerable populations: the elderly. In “Age-Based Property Tax Exemptions in Georgia,” the authors describe the prevalence of these exemptions across the state and offer a standardized way to determine the financial impact to local budgets.
The chart at the right shows the percentage of county school districts in Georgia with some age-based tax exemption in place.
What does this cost taxpayers? In Cobb County, elderly residents have one of the most generous exemptions in the state, allowing everyone 62 and older to be exempt from the Cobb County School District portion of their property taxes — on the full value of their homes. This costs the district nearly 7 percent of its budget, or about $55 million annually.
Percentage of Ga. County School Districts
with Age-Based Exemptions
Notable Research
State Tax Reform Efforts: 2010-2015
This report documents comprehensive tax reform efforts of select states from 2010 to 2015, showing what changes have been contemplated, which actually passed, and potential lessons from states’ tax reforms during this period.
The Impact of Interstate Mobility on the Effectiveness of Property Tax Reduction in Georgia
In 2008, Georgia policymakers considered eliminating school property taxes on homesteaded properties and replacing the lost revenue with additional sales tax revenue. Although it did not pass, it came close. This study looks at the economic effects of this proposal using a computable general equilibrium (CGE) model combined with a microsimulation model.
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Publications
Low-SALT Rules: Charitable Contributions for State Tax Credits
State Tax Notes, Oct. 29, 2018, Robert Buschman
In this viewpoint, the author examines the charitable contribution deductions for donations to Georgia’s scholarship and rural hospital tax credit programs before and after the enactment of the federal Tax Cuts and Jobs Act for both individual and corporate taxpayers. This article was originally published in State Tax Notes by Tax Analysts, a national and international provider of tax news and analysis.
New Normal? The Declining Relative Importance of State Taxes
CSLF Working Paper, Sept. 17, 2018, David Sjoquist
In this viewpoint, the author provides several explanations for the declining state tax revenue relative to income that has continued since the Great Recession. This article was originally published in State Tax Notes by Tax Analysts, a national and international provider of tax news and analysis.
Age-Based Homestead Exemption Estimate Calculator
CSLF Brief, Publication No. 40, June 19, 2018, H. Spencer Banzhaf and Per Johnson
This brief explains how government officials and citizens can use the Excel-based calculator to roughly estimate revenue effects of new or expanded age-based homestead exemptions for each county and school district in Georgia. This brief and calculator expand on a 2016 CSLF publication, Age-Based Property Tax Exemptions in Georgia.
A Brief History of the Property Tax in Georgia
FRC Report, Publication No. 293, April 25, 2017, David Sjoquist
This is an update to a 2008 Fiscal Research Center report about the development of Georgia’s property tax system, which dates back to 1852. This report begins by describing the tax system that existed prior to 1852 and discussing why that system was replaced. It then describes how that tax system evolved to what is now in place in Georgia, pointing out significant changes made over the past 165 years.
Analysis of Georgia's Title Ad Valorem Tax 2013-2016
FRC Report, Publication No. 295, Sept. 26, 2017, Laura Wheeler
In 2013, Georgia implemented the title ad valorem tax, or TAVT, leveling significant implications for vehicle taxation. Notably, the new system replaced the previous sales tax ad valorem system with a one-time tax on new purchases, leases, and out-of-state vehicle registration. This report analyzes the impact of the transition to TAVT and provides a five-year outlook for TAVT revenues for each of Georgia’s 159 counties.
The Fiscal Architecture of Georgia
FRC Report, Publication No. 292. Jan. 12, 2017, Rahul Pathak and Sally Wallace
Economic and demographic factors have important implications for public finances in Georgia. This report provides detailed information on major economic and demographic changes in Georgia and their impact on the fiscal health of the state.
Georgia's Taxes: A Summary of Major State and Local Taxes (2017)
Tax Handbook 23rd Edition, Jan. 12, 2017, Robert Buschman
A handbook on taxation that provides a quick overview of all state and local taxes in Georgia.
The Impact of Interstate Mobility on the Effectiveness of Property Tax Reduction in Georgia
CSLF Report, Publication No. 30, Oct. 11, 2016, Andrew Feltenstein, Mark Rider, David L. Sjoquist and John Winters
In 2008, Georgia policymakers considered eliminating school property taxes on homesteaded properties and replacing the lost revenue with additional sales tax revenue. Although it did not pass, it came close. This study looks at the economic effects of this proposal using a computable general equilibrium (CGE) model combined with a microsimulation model. Ultimately, the authors discover that citizens would be worse off after the reform.
Age-Based Property Tax Exemptions in Georgia
CSLF Report, Publication No. 29, Sept. 27, 2016, H. Spencer Banzhaf, Ryan Mickey, Carlianne Patrick
Many local jurisdictions across the United States, including a number in Georgia, offer property tax exemptions to older Americans. These age-based exemptions can vary widely and be controversial. This new report attempts to inform such debates by describing the prevalence of age-based exemptions across Georgia's local governments, as well as offering a way to determine the financial impact on local budgets.
Modeling Georgia Fundamental Tax Reform Using REMI
FRC Report, Publication No. 288, Aug. 30, 2016, Peter Bluestone
The study uses Regional Economic Models, Inc., or REMI, to examine the effects of tax reform on different sectors of the state economy, including labor force participation, savings and investments, and consumer spending, among others. The report finds that fundamental tax reform -- using the REMI model -- has a modest effect on the areas studied.
Georgia's Property Taxes by the Numbers
FRC Report, Publication No. 281, March 8, 2016, David Sjoquist and Nicholas Warner
As an update to a 2008 Fiscal Research Center publication, this report considers the growth in the property tax base and revenue from 1980 through 2014, how the tax base varies across counties, how the composition of the tax base has changed over time, property taxes by type of government, and how the level and growth of property taxes in Georgia compares to other states.
A Description of the Film Tax Credit and Film Industry in Georgia
FRC Report, Publication No. 280. Feb. 23, 2016, Oronde Small and Laura Wheeler
In a new brief, researchers provide a detailed description of Georgia's film tax credit, a review of the incentive's significant features compared to those offered by other states, and a snapshot of the industry in Georgia compared to the rest of the nation.
State Tax Reform Efforts: 2010-2015
CSLF Report, Publication No. 22, Jan. 26, 2016, Rahul Pathak, Carolyn Bourdeaux, Sally Wallace, Sarah Larson
This report documents comprehensive tax reform efforts of select states from 2010 to 2015, showing what changes have been contemplated, which actually passed, and potential lessons from states' tax reforms during this period.
The Homestead Option Sales Tax: Lessons Learned from DeKalb and Rockdale Counties
CSLF Report, Publication No. 20, Nov. 17, 2015, Mels de Zeeuw and Laura Wheeler
This brief examines the Homestead Option Sales Tax (HOST), as implemented in DeKalb and Rockdale counties. It describes the effects of municipal incorporation on HOST revenues and capital outlays; the interactions with state and local taxes; the effect of HOST on lower-income vs. higher-income residents, as well as homeowners and renters; and the lessons learned about this system of property tax relief.
Georgia's Incredible Shrinking Sales Tax Base
FRC Report, Publication No. 273, Oct. 6, 2015, Robert Buschman
This report explores what might explain the dramatic shortfall in Georgia's sales tax revenues in recent years, and their failure to recover from the 2001 and 2007-09 recessions, along with personal income and the overall economy.
Georgia Tax Credits (2015)
FRC Report, Publication No. 272, Sept. 22, 2015, Sherman A. Cooper and Laura Wheeler
This 2015 compendium details Georgia business and personal credits allowed against the state's corporate and individual income tax. Economic development, housing and environmental tax credits are among those included.
Willing to Pay: Charter Schools' Impact on Georgia Property Values
FRC Report, Publication No. 271, Aug. 18, 2015, Carlianne Patrick
This report looks at whether homebuyers are willing to pay a premium for access to charter schools in Georgia. The research looks at 13 charter schools with enrollment priority zones, and it finds that on average home sale prices are 7 to 13 percent higher in the zone with the greatest chance for enrollment. The report also gives an overview of features and structure of charter schools in Georgia.
Georgia's Ranking Among the States: Budget, Taxes and Other Indicators
CSLF Report, Publication No. 15, June 16, 2015, Elton Davis
This 2015 guide includes a collection of metrics and state rankings that compare Georgia to other states across the nation. Several of the comparisons focus on total state or local government revenue and expenditures, but the report also includes measures that compare either expenditures or state characteristics within specific functional areas, such as education, health and transportation.
Financing Georgia's Future III
FRC Report, Publication No. 270, June 2015, Jeremy Alexander and Sally Wallace
This analysis highlights the major state and local revenue sources from 1998-2012, including specific data surrounding recent recessions. The report's thorough look at trends in Georgia's state and local finances also serves as a foundation for discussion on government finance in the state.
Replacing the Income Tax with Increased Sales Taxes: What Do We Know?
Policy Memorandum, June 10, 2014, David L. Sjoquist
This policy memorandum considers the issue of replacing Georgia income taxes with increased sales taxes.
Tax Allocation Districts: How They Work
Presentation, April 16, 2014, David Sjoquist
A presentation to the DeKalb County School District meeting in Georgia.
Analysis of Alternative Consumption Tax Structures for Georgia
Policy Memorandum, February 10, 2014, Robert Buschman
This analysis has been prepared at the request of the Georgia Senate Research Office, in support of the Senate Fair Tax Study Committee's consideration of consumption-based taxation as an alternative to current state income taxes.
Analysis of Partial Income Tax Replacement with Increased State Sales Tax
Policy Memorandum, February 10, 2014, Robert Buschman
This analysis estimates state sales tax rates necessary to offset varying amounts of personal income tax marginal rate cuts on a static, revenue-neutral basis.
Inquiry from Chairman Hill, Senate Fair Tax Study Committee, Regarding Taxable Consumption of Households at Different Income Levels and Other Matters
Policy Memorandum, February 10, 2014, Robert Buschman
In follow-up to the analysis of alternative consumption tax structures for Georgia, presented to the committee on September 20, Sen. Hill asked for additional information to address certain related questions, which are restated/summarized as follows.
Georgia's Taxes: A Summary of Major State and Local Government Taxes, 20th Edition
Tax Handbook 20th Edition, January 14, 2014, Carolyn Bourdeaux, Richard Hawkins
A handbook on taxation that provides a quick overview of all state and local taxes in Georgia. FRC Publication A (20).