Taxation limits on local governments; municipalities and school districts in the state of Georgia

Joseph K.

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Taxation limits on local governments; municipalities and school districts in the state of Georgia

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Taxation limits, local governments, municipalities, School Districts, Georgia, county government expenditure

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Abstract

There exist a number of limits on taxation both statutory and constitutional that apply in the state of Georgia. The reasons for the existence of such limitations vary, but majorly they are meant to check county government expenditure, Ensure property taxes are maintained at reasonable and reduced rates and improve the accountability of the municipalities and district schools in the collection and the use of public funds (Brazer, 2008).

Sources of state and local government tax revenues
Municipality's fiscal years ends
Property tax
Why there is need to limit taxation in a state ?
Property and assessed values
Current rates of income tax in Georgia and the need to guard against double taxation
Limits on taxation applied by the State of Georgia to municipalities
Limits on taxation applied by the State of Georgia to school districts
Discussion and analysis of constitutional and statutory limitations

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[...] According to Ploeg (2006) the state of Georgia law requires that property tax is paid by March, being payment of the year before. The taxation rate on property tax varies depending on the type of property. In the state of Georgia, property tax is collected by the various municipalities. The tax rate applicable is determined on an annual basis by the board of county commissioners of the various municipalities and district schools (Abelson, 2006). The rates are measured in units called mills where one mill represents a rate of per $1000 of the property assessed value. [...]

[...] Purpose The state limits property tax rates charged by local governments for three main reasons. According to Steven (2012) in the article “results of local spending and revenue limitation” the first reason is a way of checking the growth of the local units, counties that have developed most of the required structures should charge fewer taxes in order to reduce the burden of the residents. Secondly, to ensure accountability in the expenditure of public funds, this is done to limit misappropriation and lastly to promote reliance on the State government. [...]

[...] These limitations on taxations also minimize the reliance of the municipalities and school districts on their own sources of revenue. The counties can raise revenue through investment in profitable ventures or disposal of some of its assets besides the collection of tax. By limiting the rate of taxation and capping the maximum amount to be collected as tax by local governments, the state is able to track expenditure in the municipalities and ensure no misappropriation occurs. A balance is reached between the financial requirements of a municipality or school district to carry out their functions and the amount of tax that can be collected without eliciting an outcry from tax payers. [...]

[...] For landmark historic property to qualify for preferential treatment, they should have been certified by a local government as landmark historic property. In some cases, local orders may decide to extend the preferential assessment to; tangible income-producing real property, tangible, but residential property, or a combination of the two. Taxpayers may also qualify for preferential treatment of they agree to maintain their property as either agricultural land or property set aside specifically for conservation purposes for a period of 10 years. [...]

[...] The specific property tax limits provide that a given rate cannot be exceeded except through a popular vote. These limits however are applicable to specific school districts in the state of Georgia and each has a different allowable maximum rate. In most school districts, the rates do not exceed one-fourth of a mill per dollar of a property's assessed value as annual levy for tangible property. Shares of stocks shall be taxed at an annual rate not exceeding five mills per dollar on the property's value. [...]

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