Georgia Constitution Practice Exam

What limitation do cities and counties face regarding their power to tax?

1. Cities can only utilize sales tax.

2. Counties can levy any tax according to state law.

3. Cities may use any tax authorized by the constitution or general law.

4. Cities and counties cannot levy any taxes.

The correct answer is: Cities may use any tax authorized by the constitution or general law.

Cities and counties in Georgia have the authority to levy taxes, but this power is limited by the Georgia Constitution and state law. The correct response highlights that cities may impose any tax that is authorized by the constitution or general law. This means that their ability to collect taxes is not infinite; they must adhere to the limitations set forth by higher laws that govern the types of taxes they can implement. For instance, a city may choose to impose property taxes or special purpose local option sales taxes, but must do so within the framework established by state regulations. The other options present misunderstandings of the taxing powers of cities and counties. It is incorrect to state that cities can only utilize sales tax, as they have broader powers under certain legal constraints. Similarly, while counties do hold significant power to levy taxes, they do not have unrestricted authority to impose any tax they desire; they too are limited by state law and constitutional provisions. Lastly, the assertion that cities and counties cannot levy any taxes is inaccurate, as both local governments do possess taxing authority, again bounded by legal stipulations. This comprehensive structure ensures that local governments operate within a responsible framework that balances their needs with those of the citizens.