---
title: Ga. Const. Art. VII, Sec. III, Para. I. Taxation; purposes for which powers may be exercised.
collection: code
id: ga-const:art-vii-sec-iii-para-i
cite_as: Ga. Const. Art. VII, Sec. III, Para. I
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# Ga. Const. Art. VII, Sec. III, Para. I. Taxation; purposes for which powers may be exercised.

A constitution provision shown as in force is in force as printed in the volume. A court decision can make a printed provision unenforceable without changing the volume, and the volume does not record that.

(a) Except as otherwise provided in this Constitution, the power of taxation over the whole state may be exercised for any purpose authorized by law. Any purpose for which the powers of taxation over the whole state could have been exercised on June 30, 1983, shall continue to be a purpose for which such powers may be exercised.

(b) Subject to conditions and limitations as may be provided by law, the power of taxation may be exercised to make grants for tax relief purposes to persons for sales tax paid and not otherwise reimbursed on prescription drugs. Credits or relief provided hereunder may be limited only to such reasonable classifications of taxpayers as may be specified by law.

## Cross References

Public debt, Ga. Const. 1983, Art. VII, Sec. IV, Paras. I through XI. State sinking fund, Ga. Const. 1983, Art. VII, Sec. V, Para. III. Education, Ga. Const. 1983, Art. VIII, Sec. I, Para. I and Ga. Const. 1983,Art. VIII, Sec. VII, Para. I. Purposes of county taxation, Ga. Const. 1983, Art. IX, Sec. IV, Para. III. Retirement systems for public employees, Ga. Const. 1983, Art. III, Sec. X, Paras. I through V.

## Editor's Notes

In light of the similarity of the provisions, decisions under former Ga. Const. 1976, Art. VII, Sec. II, Para. I and antecedent provisions, providing for specific allowable purposes of taxation, are included in the annotations for this paragraph.

In light of the similarity of the provisions, opinions under former Ga. Const. 1976, Art. VII, Sec. II, Para. I and antecedent provisions, relating to specific allowable purposes of taxation, are included in the annotations for this paragraph.

Former Code 1933, § 32-403 (see now O.C.G.A. § 20-2-11) did not exceed this paragraph’s constitutional limitations on the use of moneys derived from state taxation. 1963-65 Op. Att’y Gen. p. 697. (see Ga. Const. 1983, Art. VII, Sec. III, Para. I).

For the state to provide with state olate Ga. Const. 1976, Art. III, Sec. VIII, Para. XII (1) (see Ga. Const. 1983, Art. III, Sec. VI, Para. VI) prohibiting granting any donation or gratuity in favor of any person, corporation, or association. 1971 Op. Att’y Gen. No. 71-42.

Department of Public Safety may expend funds allotted by the Office of POWERS Planning and Budget for purpose of printing posters and leaflets in connection with campaign to promote safe driving. 1945-47 Op. Att’y Gen. p. 601. Purposes Supportable by Exercise of

Taxation Powers

1. State Government and Public

Institutions

State departments, institutions, or ship fees in various state and national organizations from state appropriated funds. 1968 Op. Att’y Gen. No. 68-110.

2. Educational Purposes pose’’ is to be given the broadest significance; the expression is ‘‘... broad enough to cover all things necessary or incidental to the furtherance of education ...,’’ but the scope of the expression does not extend to any measure that might incidentally prove to be of assistance to a program of education. 1975 Op. Att’y Gen. No. 75-33.

The phrase ‘‘educational purposes’’ in this paragraph does not include a school lunch program. 1952-53 Op. Att’y Gen. p. 71. (see Ga. Const. 1983, Art. VII, Sec. III, Para. I).

Expenditure not necessarily for

## Law Reviews

For article, ‘‘School Systems, Segregation and the Supreme Court,’’ see 6 Mercer L. Rev. 189 (1955). For article, ‘‘Quasi-Municipal Tort Liability in Georgia,’’ see 6 Mercer L. Rev. 287 (1955). For article, ‘‘The County Spending Power: An Abbreviated Audit of the Account,’’ see 16 Ga. L. Rev. 599 (1982).

For note discussing Georgia’s local options sales tax, Art. 2, Ch. 8, T. 48, see 31 Mercer L. Rev. 313 (1979).

For comment on Sams v. Olah, 225 Ga. 497, 169 S.E.2d 790 (1969) as to the constitutionality ofArt. 2, Ch. 19, T. 15, see 21 Mercer L. Rev. 355 (1969).

## 1976 Constitution.

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

## Power of Taxation Limited.

The General Assembly has only those powers

INSTITUTIONS

FACILITIES

SYSTEMS of taxation over the state which it is permitted to exercise under the grant of power contained in the Constitution. Brown v. Martin, 162 Ga. 172, 132 S.E. 896 (1926).

Sole purposes for which the state may tax are listed in Ga. Const. 1976, Art. VII, Sec. II, Para. I (see Ga. Const. 1983, Art. VII, Sec. III, Para. I) and Ga. Const. 1976, Art. VII, Sec. II, Para. IV (see General Consideration (Cont’d) Ga. Const. 1983, Art. VII, Sec. III, Para. III). City Council v. Mangelly, 243 Ga. 358, 254 S.E.2d 315 (1979).

List of purposes in Ga. Const. 1976, Art. VII, Sec. II, Para. I (see Ga. Const. 1983, Art. VII, Sec. III, Para. I) and Ga. Const. 1976, Art. VII, Sec. II, Para. IV (see Ga. Const. 1983, Art. VII, Sec. III, Para. III) is the only source of purposes of taxation for which the state may validly delegate to its creatures the power to tax. City Council v. Mangelly, 243 Ga. 358, 254 S.E.2d 315 (1979). tion is required to validate a tax levy by a creature of the state. City Council v. Mangelly, 243 Ga. 358, 254 S.E.2d 315 (1979).

This paragraph is not applicable to a taxation act by county. Columbus S. Ry. v. Wright, 89 Ga. 574, 15 S.E. 293 (1892), aff’d, 151 U.S. 470, 14 S. Ct. 396, 38 L. Ed. 238 (1894) (see Ga. Const. 1983, Art. VII, Sec. III, Para. I).

County tax for purpose of paying pensions is invalid. Verdery v. Walton, 137 Ga. 213, 73 S.E. 390 (1911).

## Express Constitutional authoriza-Taxing to Grant Funds to Municipalities Is Not Delegable.

Though the purposes listed in Ga. Const. 1976, Art. VII, Sec. II, Para. I (see Ga. Const. 1983, Art. VII, Sec. III, Para. I) are capable of delegation, the right of the state to tax in order to grant funds to municipalities under Ga. Const. 1976, Art. VII, Sec. II, Para. IV (see Ga. Const. 1983, Art. VII, Sec. III, Para. III) is not capable of delegation to counties or to any other subdivision of the state. City Council v. Mangelly, 243 Ga. 358, 254 S.E.2d 315 (1979).

It can never be a valid county purpose to provide revenue to a municipality, because municipalities are not citizens of nor creatures of counties — they are an entirely different form of government. City Council v. Mangelly, 243 Ga. 358, 254 S.E.2d 315 (1979).

Restitution does not fully satisfy injury which results to one from wrongful levy and collection of a tax for payment of which the person is not legally liable. Agricultural Commodities Auth. v. Balkcom, 215 Ga. 107, 109 S.E.2d 276 (1959).

General Assembly exceeded tax

## Power.

The assessment which the agricultural commodities authority was empowered to levy and collect from the producers of the commodity peanuts, under the attacked section of former Code 1933, Ch. 5-26, § 10 of Ga. L. 1951, p. 717, as amended by Ga. L. 1958, p. 237, was unquestionably a tax on that particular agricultural commodity, which was levied and collected by the state through one of its instrumentalities solely for the purpose of advertising and promoting such commodity by the authority; and since it was not a tax which the General Assembly has constitutional power to impose only on that particular agricultural commodity for any one of the purposes enumerated in this provision of the Constitution, the General Assembly was without constitutional authority to create an instrumentality of the state and clothe it with power to impose a tax on such commodity. Agricultural Commodities Auth. v. Balkcom, 215 Ga. 107, 109 S.E.2d 276 (1959).

## Wrongful Tax Not Cured by Refund.

— Invalidity of former Code 1933, Ch. 5-26, § 10 of Ga. L. 1951, p. 717, as amended by Ga. L. 1958, p. 237, empowering agricultural commodities authority to levy and collect from procedures of the commodity peanuts, was not cured by the election provided for by § 7 of the act or by provision in § 10 for refund to dissatisfied producer. Agricultural Commodities Auth. v. Balkcom, 215 Ga. 107, 109 S.E.2d 276 (1959).

Term ‘‘debt,’’ as used in this paragraph, refers to the principal of the debt due, exclusive of unearned interest on the debt. City Council v. Dawson Waterworks Co., 106 Ga. 696, 32 S.E. 907 (1899); Epping v. City of Columbus, 117 Ga. 263, 43 S.E. 803 (1903), overruled on other grounds, 141 Ga. 322, 80 S.E. 1010 (1914) (see Ga. Const. 1983, Art. VII, Sec. III, Para. I).

None of the purposes of taxation enumerated by this paragraph are broad enough to include acquisition of a railroad. Park v. Candler, 113 Ga. 647, 39 S.E. 89 (1901) (see Ga. Const. 1983, Art. VII, Sec. III, Para. I).

Purpose for Exercising Powers of

Taxation 1. Support of State Government and

Public Institutions

This paragraph authorizes levy of an ad valorem tax upon all property in the state for support of public institutions, which includes the superior courts. Clark v. Hammond, 134 Ga. 792, 68 S.E. 600 (1910) (see Ga. Const. 1983, Art. VII, Sec. III, Para. I).

2. Educational Purposes

Constitution adheres to the strict requirement that all school funds be devoted to educational purposes as defined in the statutes and Constitution of this state. Sheley v. Board of Pub. Educ., 132 Ga. App. 314, 208 S.E.2d 126 (1974), cert. dismissed, 233 Ga. 487, 212 S.E.2d 627 (1975).

Neither payment nor settlement of a claim is within the ambit of ‘‘educational purpose’’ for which alone a school board may spend its funds. Sheley v. Board of Pub. Educ., 132 Ga. App. 314, 208 S.E.2d 126 (1974), cert. dismissed, 233 Ga. 487, 212 S.E.2d 627 (1975).

3. Payment of Public Debt divisions of this state or authorities controlled by them is not a permitted purpose for which public funds may be used under this paragraph and, therefore, it is not a facility or service of the state within the meaning of that term in Ga. Const. 1976, Art. IX, Sec. VI, Para. I (see Ga. Const. 1983, Art. VII, Sec. IV, Para. I). Mulkey v. Quillian, 213 Ga. 507, 100 S.E.2d 268 (1957) (see Ga. Const. 1983, Art. VII, Sec. III, Para. I).

Former Code 1933, § 58-706.1 (see now O.C.G.A. Art. 4, Ch. 5, T. 3) did not impose a state tax for state purposes, which would invoke this paragraph and Ga. Const. 1976, Art. VII, Sec. I, Para. III (see Ga. Const. 1983, Art. VII, Sec. I, Para. III); instead, it imposes a state tax for local purposes, and the counties’ adherence to the tests of Ga. Const. 1976, Art. IX, Sec. V, Paras. I and II (see Ga. Const. 1983, Art. IX, Sec. IV), delineating the allowable scope of county purposes of taxation is all that is required. Chanin v. Bibb County, 234 Ga. 282, 216 S.E.2d 250 (1975) (see Ga. Const. 1983, Art. VII, Sec. III, Para. I). 4. Construction and Maintenance of

State Facilities

Provided the authority has been pose, the legislature may appropriate money for administrative expenses of that authority and such appropriation would be a valid use of tax funds under this paragraph. Rich v. State, 237 Ga. 291, 227 S.E.2d 761 (1976) (see Ga. Const. 1983, Art. VII, Sec. III, Para. I).

## Loaning of Money to Political Subestablished for a Valid Public pur-State Docks and Promotion of Natural Resources.

This paragraph authorizes the state to levy taxes to be used to construct and maintain state docks, and to promote natural resources of the state. The acquisition, construction, maintenance, and operation of public ports, docks, wharves and related facilities is a function ordinarily carried on by the state, or a state instrumentality, and is a legitimate function of state government. Sigman v. Brunswick Port Auth., 214 Ga. 332, 104 S.E.2d 467 (1958).

The Ports Authority is a creature of the state, and in the operation of the docks, wharves, etc., it does so as the instrumentality of the state for governmental purposes as authorized by the Constitution. The Ports Authority as an employer comes within the exception provision of 29 U.S.C. §§ 151-168 of the National Labor Relations Act and is not subject to the jurisdiction of the National Labor Relations Board. International Longshoremen’s Ass’n v. Georgia Ports Auth., 217 Ga. 712, 124 S.E.2d 733, cert. denied, 370 U.S. 922, 82 S. Ct. 1561, 8 L. Ed. 2d 503 (1962).


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