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Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
Introduction and Overview
Sally Wallace
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
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
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
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
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
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
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
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
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
Have revenues grown?
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
How much/how fast?
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
Adjusting for inflation
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
Relative to personal income
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
Relative to the U.S.
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
What has happened to the base?
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
Base per capita
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
Base relative to income
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
Volatility of base growth
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
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%
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
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
Georgia StateUniversityAndrew Young School of Policy
Studies
Fiscal Research Center
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
