One of the more interesting states with regard to tax law is certainly this one, and it offers multiple opportunities for the well-researched investor. Georgia is one of two states that operate under a slightly different premise for defaulted property taxes--they offer a tax certificate. Although different than other states, this technique yields a higher interest rate and allows for a quicker return.

Georgia Tax Law

Georgia's 159 counties vary on what type of default they offer, but all have a form of a tax deed known as a tax certificate. When a homeowner owes back taxes on property that causes the property to be sold in a tax sale, it is neither for outright ownership of the property (tax deed) or for ownership of the taxes (tax lien certificate). Instead, aspects of both of these are utilized in the form of a Georgia tax certificate.

The homeowner is required to pay back taxes plus a healthy 20 percent interest rate to the owner of the certificate. If not, the home can be defaulted for an absolute tax deed after only twelve months, indicating ownership. Considering the short time between default and ownership, it is a great place to get a home from the investment.

Georgia's tax laws can be tricky, and all of the state's counties vary. But with such a high interest rate and quick turnover, it is a sound place to invest. Just remember, there is always property to back it up, a government-endorsed alternative to other riskier investments.