STATE REVENUE Where do we get the money from and how do we spend it?

What is revenue?  All money that the government brings in. Examples Taxes Fees Sales Lottery Funds  All money that the government brings in. Examples Taxes Fees Sales Lottery Funds

Who can levy taxes in Georgia?  STATE  COUNTIES  CITIES  STATE  COUNTIES  CITIES

WHAT IS A TAX? A tax is a required payment to a government by a person or business. Types of taxes  Personal Income Tax - largest source of revenue for Georgia.  Corporate Income Tax  Sales tax  Property Tax A tax is a required payment to a government by a person or business. Types of taxes  Personal Income Tax - largest source of revenue for Georgia.  Corporate Income Tax  Sales tax  Property Tax

A corporate income tax is a tax that is levied on a business. How is a corporate income tax determined?  Corporate Income tax is based on the money a company makes.  The more your company makes the more you get taxed. The less your company makes the less you get taxed.  It is collected by the state level only How is a corporate income tax determined?  Corporate Income tax is based on the money a company makes.  The more your company makes the more you get taxed. The less your company makes the less you get taxed.  It is collected by the state level only

SALES TAX  A tax levied on most retail goods and services.  Usually 7-8%  A tax levied on most retail goods and services.  Usually 7-8%

PROPERTY TAX Taxes placed on property  LAND  HOMES  CARS  BOATS  BUSINESS INVENTORY Taxes placed on property  LAND  HOMES  CARS  BOATS  BUSINESS INVENTORY

STATE LOTTERY  Lottery funds are the largest non-tax revenue source for Georgia.  Used for special programs like scholarships and preschool programs.  Lottery funds are the largest non-tax revenue source for Georgia.  Used for special programs like scholarships and preschool programs.

HOW DO LOCAL GOVERNMENTS GET NON-TAX REVENUE FOR GEORGIA?  Most local governments get non-tax revenue through fees for services such as water and sanitation.

BALANCED BUDGET  A balanced budget means that the state cannot spend more money than it brings in.  The state cannot borrow from other sources.  This keeps the state out of debt.  It also limits programs on which the state’s money is spent.  A balanced budget means that the state cannot spend more money than it brings in.  The state cannot borrow from other sources.  This keeps the state out of debt.  It also limits programs on which the state’s money is spent.

Who decides how and where state funds are spent?  GOVERNOR  REPRESENTATIVES FROM STATE AGENCIES  STATE LEGISLATURE  SPECIAL INTEREST GROUPS  GOVERNOR  REPRESENTATIVES FROM STATE AGENCIES  STATE LEGISLATURE  SPECIAL INTEREST GROUPS

HOW DO GEORGIA’S PUBLIC SCHOOL SYSTEMS USE THEIR BUDGET MONEY?  Maintain school buildings  Teachers’ pay  Supplies to run the school  Maintain school buildings  Teachers’ pay  Supplies to run the school

OTHER STATE SERVICES  Maintaining roads throughout the state  State parks  Conservation areas  Maintaining roads throughout the state  State parks  Conservation areas

GEORGIA STATE REVENUE SOURCES (2004)

GEORGIA STATE SPENDING (2004)