Georgia

Georgia was the last of the 13 original colonies to tax its citizens, but today its state tax structure is among the broadest in the US. The first comprehensive state tax was provided by the Property Tax Act of 1852, which allocated 50% of the tax to the counties; as of 1994, less than 1% of property taxes went to the state. Motor vehicle license fees began in 1910; motor fuel has been taxed since 1921, tobacco since 1923. In 1929, Georgia began taxing incomes; a withholding tax on incomes has been required since 1960.

In 1951, Georgia enacted what at that time was the most all-inclusive sales tax in the US; this 4% tax is now the state's 2nd-largest source of revenue. Basic foods and prescription drugs are exempt. State law allows counties to charge an additional 1% local-option sales tax and to use the money to roll back property taxes. Local sales and use taxes range from 1% to 3%. Almost half of Georgia's taxes (48.1% in 2000) are collected at the local level. The state personal income tax schedule has 6 brackets ranging from 1% to 6%. The lowest rate applies up to $750 of taxable income, and the highest to taxable income above $7000. The basic corporate tax rate is 6%. Other state taxes include selective sales taxes (excises) on tobacco products, alcoholic beverages, motor fuels and insurance premiums, and various license fees. The state estate state is tied to the federal tax exemption for state death taxes, and is therefore scheduled to be phased out by 2007 in tandem with the federal estate tax credit absent some countervailing action by the Georgia government to preserve it. Revenue losses to Georgia from the phasing out of its estate tax are estimated at -$24 million in 2003, -$56million in 2004 and -$129 million in 2007. In 2002 death and gift taxes accounted for 0.89% of state revenue. The state property tax accounted for 0.3%.

State tax collection in Georgia totaled $13.77 billion in 2002, 47.1% from the individual income tax, 35% from the state sales tax, 8.6% from selective sales taxes, 4.1% from the corporate income tax. In 2003, combined state and local taxes amounted to 9.9% of income, the 15th highest in the country. The following table from the US Census Bureau provides a summary of taxes collected by the state in 2002.