CONSTITUTION OF THE STATE OF GEORGIA

ARTICLE VII. TAXATION AND FINANCE

Paragraph II. Taxing power limited.

(a) The annual levy of state ad valorem taxes on tangible property for all purposes, except for defending the state in an emergency, shall not exceed one-fourth mill on each dollar of the assessed value of the property.

(b) So long as the method of taxation in effect on December 31, 1980, for the taxation of shares of stock of banking corporations and other monied capital coming into competition with such banking corporations continues in effect, such shares and other monied capital may be taxed at an annual rate not exceeding five mills on each dollar of the assessed value of the property.

1976 Constitution.

- Art. VII, Sec. I, Para. II.

Cross references.

- Prohibition against certain taxes, U.S. Const., Art. I, Sec. X, Cl. 2, and § 48-13-2 et seq.

JUDICIAL DECISIONS

The constitutional restriction to five mills is applicable only to taxes upon property ad valorem, and does not apply to occupation privilege sales tax. Standard Oil Co. v. State Revenue Comm'n, 179 Ga. 371, 176 S.E. 1 (1934).

The tax imposed by the revenue tax act is an excise tax, and is not tax on "property" in the sense in which that word is used in this paragraph, limiting the levy of taxes on property by the General Assembly to five mills on each dollar of the value of the property. Scott v. State, 187 Ga. 702, 2 S.E.2d 65 (1939), overruled on other grounds, Blackston v. State Dep't of Natural Resources, 255 Ga. 15, 334 S.E.2d 679 (1985) (see Ga. Const. 1983, Art. VII, Sec. I, Para. II).

Uniformity of taxation and equal protection not violated.

- A decree enjoining the assessment of a railroad's property for local ad valorem tax purposes at a greater percentage of fair market value than that employed in counties and municipalities and ordering a new assessment does not violate uniformity and equal protection by discriminating against taxpayers in counties and municipalities where assessments are higher as to the quarter-mill tax authorized by this paragraph. Undercofler v. Seaboard Air Line R.R., 222 Ga. 822, 152 S.E.2d 878 (1966) (see Ga. Const. 1983, Art. VII, Sec. I, Para. II).

Levy exceeding tax cap authorized for quality education.

- The exception contained in the 1982 tax-cap amendment to former Ga. Const. 1976, Art. VII, Sec. I, Para. II (see Ga. Const. 1983, Art. VII, Sec. I, Para. II), presented a clear and unambiguous explanation of those circumstances under which the levy could exceed the tax cap. The Quality Basic Education Act, O.C.G.A. § 20-2-130 et seq., which imposes additional funding obligations upon local boards of education for which no state or federal funds are provided, mandated such a levy. Hicks v. Arnall, 258 Ga. 296, 368 S.E.2d 733 (1988).

Cited in Scott v. State, 187 Ga. 702, 2 S.E.2d 65 (1939).

OPINIONS OF THE ATTORNEY GENERAL

The phrase "for all purposes" means all state purposes. 1952-53 Op. Att'y Gen. p. 189.

The purpose of this paragraph was to take the state out of ad valorem taxes and leave this field of taxation to counties and municipalities; it was necessary for the state to retain in the Constitution the right to levy some amount in order that the state might continue its present functions in assessment and collection of taxes on public utilities; another purpose of this paragraph was to eliminate so far as practicable the inequalities existing in various counties in assessing real estate for the purpose of taxation. 1952-53 Op. Att'y Gen. p. 189.(see Ga. Const. 1983, Art. VII, Sec. I, Para. II).

Former Code 1933, § 92-3701 (see now O.C.G.A. § 48-5-220) did not provide any limitation upon the rate of taxation for welfare purposes other than that stated in Ga. Const. 1976, Art. VII, Sec. II, Para. I (see Ga. Const. 1983, Art. VII, Sec. III, Para. I). 1948-49 Op. Att'y Gen. p. 357.

The State Board of Education can enforce in court notes and agreements, properly executed on standard forms, given in consideration of scholarship payments made pursuant to this paragraph in order to enable Georgia students to become teachers. 1968 Op. Att'y Gen. No. 68-373.(see Ga. Const. 1983, Art. VII, Sec. I, Para. II).

RESEARCH REFERENCES

Am. Jur. 2d.

- 71 Am. Jur. 2d, State and Local Taxation, § 104 et seq.

C.J.S.

- 84 C.J.S., Taxation, § 12.

ALR.

- Constitutionality, construction, and application of provisions of state tax law for conformity with federal income tax law or administrative and judicial interpretation, 42 A.L.R. 797; 166 A.L.R. 516; 42 A.L.R.2d 797.

Income as "property" within constitutional limitation on taxation, 70 A.L.R. 468; 97 A.L.R. 1488.

Conclusiveness of official determination of existence of emergency within the contemplation of constitutional or statutory provisions permitting excess of maximum limit of tax or indebtedness in an "emergency", 90 A.L.R. 328.

Meaning of term "assessment" or "assessed valuation" when used as basis of tax or debt limit, 156 A.L.R. 594.

Validity, construction, and effect of state statutes affording preferential property tax treatment to land used for agricultural purposes, 98 A.L.R.3d 916.