Georgia Tobacco Tax Favors High-Income Counties February 18, 2010 TF Staff TF Staff A new Tax Foundation report shows that Georgia’s tobacco tax benefits high-income counties the most by transferring funds to them in the form of state services from lower-income areas. Residents of the Cobb-Douglas health district, whose incomes are 20 percent higher than elsewhere in the state, received $1.29 in state services for every $1 its residents paid in cigarette taxes, for a total transfer of $4.2 million. In the Fulton health district, where the average income is 60 percent higher than in the rest of the state, residents received $1.26 for every $1 in cigarette taxes paid, for a total transfer of $4.7 million. Georgia’s cigarette tax rate is 37 cents per pack. The Northwest health district loses the most in the funds transfer: Its residents received 78 cents in benefits for every $1 paid in cigarette taxes, for a total loss of $3.8 million. The next-biggest “loser” was the North Georgia health district, whose residents received 82 cents for every $1 in cigarette taxes paid, for a total loss of $2.1 million. For more information, see the full Tax Foundation Fiscal Fact, No. 211¸ “Georgia Tobacco Tax Favors High-Income Counties,” authored by Chief Economist Patrick Fleenor. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Georgia Cigarette and Tobacco Taxes Excise Taxes Individual and Consumption Taxes Tags State Tax and Spending Policy