Which statement best describes county taxation and debt limits in Georgia?

• A. Counties may levy a 1% general sales tax; debt cannot exceed 10% of the assessed value of taxable property; voters must approve issuance of new debt by election.
• B. Counties may levy a 4% general sales tax; debt cannot exceed 50% of the assessed value; voter approval not required.
• C. Counties cannot levy any sales tax; debt unrestricted.
• D. Counties may levy a 2% general sales tax; debt cannot exceed 5% of assessed value; voters approve only for new debt above 2%.

Answer: (A)

Georgia counties are limited in both how much they can raise through a general sales tax and how much debt they can incur. A county may levy up to a 1% general sales tax for general purposes. General obligation debt is capped at 10% of the assessed value of taxable property in the county. For new debt that falls under these general obligations, voter approval through an election is typically required. These rules keep local spending in check and ensure residents have a say before significant debt is incurred. The other options propose higher tax rates, larger debt limits, or no voter oversight, which don’t align with Georgia’s constitutional limits.