An Analysis of Pull Factors and Local Sales Taxation in Georgia Counties

Document Type


Publication Date

Summer 2010

Publication Title

International Journal of Business and Economics Perspectives


The purpose of this study is to explain variations in the pull factors for retail sales and to provide a framework to understand the influence of sales tax rate differentials on retail sales activity in Georgia counties. A clearer perspective on the determinants of retail sales activity would enable policy makers to better understand the potential impacts of increasing sales taxes in Georgia. In particular, the results suggest that Georgia's border counties with a higher sales tax rate than their cross-border neighboring counties have lower retail pull factors; in contrast, counties with lower sales tax rates have higher pull factors. Thereby, an increase in sales tax could change local shopping patterns and drive sales away from Georgia counties to neighboring states.