Georgia House of Representatives

Exposing tax inequities and emphasizing a path forward with actionable solutions in education – a strong call to action and the promise of change

By State Representative Viola Davis (D-Stone Mountain)

(765 words)

Part Two of Two: Breaking Free from Tax Enslavement – Solutions for Georgia’s Donor Counties

In Part One of this editorial series, we explored the inequities in Georgia’s school tax system – inequities that shackle donor counties like DeKalb, Fulton and Cobb to a system of tax enslavement. These counties are burdened with higher property taxes yet see their contributions redistributed to other parts of the state through mechanisms like the Equalization Fund and Sparsity Grant.

Continue reading “Unshackling Georgia: Ending Tax Enslavement and Building Fair Solutions in Education, Part Two”

Exposing tax inequities and emphasizing a path forward with actionable solutions in education – a strong call to action and the promise of change

By State Representative Viola Davis (D-Stone Mountain)

(889 words)

Part One of Two: Tax Enslavement in Georgia – A Broken System Hurting Donor Counties

Most taxpayers and voters in Georgia have no idea how their property taxes are being used – or misused. Behind the scenes, a system of tax inequity has taken hold, one that burdens donor counties like DeKalb, Fulton and Cobb, while benefiting others at their expense. This inequity is fueled by two key components: the Equalization Fund and the Sparsity Grant. Together, they perpetuate what I call “tax enslavement,” where donor counties pay more into the system than they receive, forcing homeowners to shoulder higher property taxes while their hard-earned dollars are siphoned away to other areas.

Let’s break down this issue, one that affects every taxpayer, voter and homeowner in Georgia – especially in donor counties.

The Tax Burden on Donor Counties
Georgia’s school funding system depends heavily on property taxes, which make up the largest portion of local education funding. Counties like DeKalb, Fulton and Cobb, known as donor counties, have higher property values and higher tax rates, which generate significant revenue. But instead of keeping those funds within their communities, the state redistributes a portion of this money to other counties through programs like the Equalization Fund and Sparsity Grant.

1. Donor Counties: DeKalb, Fulton and Cobb pay far more in taxes than they receive in return. These counties are forced to levy high millage rates to meet their own educational needs while subsidizing other counties.
2. Recipient Counties: Counties like Gwinnett, the largest school district in Georgia, have benefited greatly from the Equalization Fund, receiving more than $100 million. Despite its size and resources, Gwinnett qualifies for additional funding that comes directly from the pockets of donor counties.

This redistribution creates a system where donor counties struggle to meet their own needs while being forced to fund other areas of the state.

What Are the Equalization Fund and Sparsity Grants?

To understand how this system works, we must examine the two key mechanisms of redistribution.

1. Equalization Fund: Established to level the playing field between school districts, the Equalization Fund redistributes money from wealthier counties to poorer ones. While this might sound fair in theory, in practice, it disproportionately burdens donor counties, taking away critical funding that should stay local. For example, DeKalb County, with its high property tax revenue, contributes heavily to this fund, yet receives minimal benefits in return. Gwinnett County, despite being one of the largest and wealthiest districts, qualifies for more than $100 million in Equalization funding – a glaring inequity.
2. Sparsity Grant: This grant is intended to assist rural districts with low student populations. While rural schools certainly need support, the Sparsity Grant is another mechanism that takes money from donor counties to fund programs in areas with lower property tax bases. The combined effect of these programs leaves donor counties struggling to maintain their own schools, infrastructure and services. Meanwhile, Georgia taxpayers remain largely unaware of how their money is being used.

The $16 Billion Surplus: A Missed Opportunity
Adding insult to injury, Georgia currently boasts a $16+ billion surplus, yet education in the state has been underfunded for more than 20 years. According to some estimates, the state owes its students more than $10 billion in funding due to the chronic underfunding of the Quality Basic Education (QBE) formula.

The QBE formula, which determines how schools are funded, hasn’t been updated since its inception in the 1980s. It fails to account for modern-day costs, such as technology, transportation and the needs of students in poverty or those with disabilities. Instead of fixing these systemic issues, the state continues to rely on donor counties to make up the difference, perpetuating tax enslavement and forcing homeowners to bear an ever-increasing burden.

Why This Matters to Homeowners
If you own property in DeKalb, Fulton, Cobb or another donor county, this system affects you directly:

1. Higher Property Taxes: To make up for the funds being siphoned away, donor counties must impose higher millage rates, leaving homeowners to pay more.
2. Less Funding for Local Schools: The money that should stay in your community is redirected elsewhere, leaving local schools underfunded.
3. Erosion of Equity: While donor counties pay more, recipient counties benefit disproportionately, creating an unfair system that penalizes success.

What Can Be Done?
Georgia’s school tax system is broken, but it does not have to stay this way. In the next part of this editorial series, I will propose solutions to unshackle donor counties from tax enslavement, including:

1. Reforming the QBE Formula: Modernizing how education funding is calculated to ensure every district is fairly funded.
2. Retaining Local Revenues: Ensuring that property tax dollars collected in donor counties remain within those counties for local education and infrastructure.
3. Leveraging the Budget Surplus: Using Georgia’s $16 billion surplus to address longstanding funding gaps and provide relief to overburdened taxpayers.

Join the Fight for Fairness
Every taxpayer, voter and homeowner in Georgia deserves a fair tax system – one that does not punish certain counties for their success. If you live in a donor county, your voice matters. Together, we can demand change, unshackle ourselves from tax enslavement and create a system that works for everyone.

Stay tuned for Part Two, where I will dive deeper into the solutions that can bring fairness and equity to Georgia’s school tax system.

*Editor’s note: a picture of Rep. Davis is attached.

Representative Viola Davis represents the citizens of District 87, which includes portions of DeKalb County. She was elected to the House of Representatives in 2018 and currently serves on the Defense & Veterans Affairs, Insurance, Interstate Cooperation, Natural Resources & Environment and Urban Affairs committees.

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