Special-purpose local-option sales tax

A special-purpose local-option sales tax (SPLOST) is a financing method for funding

maintenance projects.^[2]

Capital outlay projects

Capital outlay projects are defined as major projects of a permanent, long-lived nature, such as land and structures. Among the projects explicitly included are road, street, bridges, police cars, fire trucks, ambulances and garbage trucks. Georgia law allows counties and municipalities complete discretion over the types of projects selected for SPLOST funding.[2]

While funds cannot be used for most maintenance, SPLOST law explicitly allows the expenditure of funds for maintenance and repair of roads, streets and bridges.^[2]

Procedure

Georgia's state

groceries and prescription drugs exempted), with the counties allowed to add up to 2% more for SPLOST.^[3]

A SPLOST is passed by a

Georgia Constitution, and Official Code of Georgia Annotated

(O.C.G.A.) Section 48-8-115. Each SPLOST must define the projects on which the money is to be used, hence the designation of a "special purpose" tax. If enough money is raised before the full term of the tax, it may be ended at the end of an earlier calendar quarter.

Counties and

school boards

instead of county commissions and city councils.

Types of SPLOST

One SPLOST (1%) may be used to increase the homestead exemption for property taxes (sometimes called a HOST, or homestead-option sales tax).
A SPLOST is not required to exempt groceries (and almost none do), but still cannot be applied to prescriptions.
Cities are normally not allowed to levy sales taxes, they instead share proportionately with their county, according to how much was collected within respective
city limits and unincorporated areas. Cities can have a separate tax if the county does not participate. Early on, in the 1970s, Dalton had its own tax. The county (Whitfield) sued
and won the right to take over the tax.

Since 2004,
repair its old sewers and storm drains
. This does not count against the 3% cap on SPLOST/LOST/HOST taxes, and was sometimes called a MOST (municipal-option sales tax).

Like the sewer tax, the MARTA sales tax is separate and not considered a SPLOST.
The state has been divided into twelve regions, which each voted on a TSPLOST for
transportation
needs in July 2012. This also does not count against the 3% cap on SPLOST/LOST/HOST taxes.

Transportation SPLOST

Authorized by the

gas tax and county SPLOSTs already go toward roads. It was also opposed by the Sierra Club for putting so much more toward roads that will simply fill up again, as well as by the NAACP since it is a regressive tax

that would have also applied to basic necessities like groceries, and would have singled-out MARTA as the only agency that would be blocked from receiving operating funds.

Former Governor Nathan Deal said there will be no re-vote, and no increase in the taxes on gasoline (which are constitutionally prohibited from going to transportation alternatives), even though such taxes are borne by the drivers actually creating the traffic (a user fee).

The three regions which voted for the tax are all in

middle Georgia, including Columbus and Augusta. Still causing controversy is the fact that local government in the other nine regions will now be required to put up 30% matching funds for projects for the next two years instead of the typical 10% to 15%.^[4]

References

^ "What is SPLOST". Augustaga Georgia. Retrieved November 13, 2013.
^ ^a ^b ^c "Special Purpose Local Option Sales Tax: A Guide for County Officials" (PDF) (Press release). Association County Commissioners of Georgia. March 2011. Retrieved August 5, 2012.
^ "2014 Georgia Code :: Title 48 - REVENUE AND TAXATION :: Chapter 8 - SALES AND USE TAXES :: Article 3 - COUNTY SALES AND USE TAXES :: Part 1 - COUNTY SPECIAL PURPOSE LOCAL OPTION SALES TAX". Retrieved 2015-09-14.
^ Chapman, Dan (2012-08-03). "Why 3 Georgia regions voted for T-SPLOST". The Atlanta Journal-Constitution. Retrieved August 6, 2012.

External links

"A penny saved: Georgia’s ambitious infrastructure plans go down in flames" - The Economist, 2012 Aug 4
Voters approve $3.2 billion worth of educational funding - Atlanta Journal-Constitution, 2011 Nov 8
"For Transit Relief, Congested Atlanta Ponders a Penny Tax" - The New York Times, 2012 July 15

[augusta-1] "What is SPLOST". Augustaga Georgia. Retrieved November 13, 2013.

[accg-2] "Special Purpose Local Option Sales Tax: A Guide for County Officials" (PDF) (Press release). Association County Commissioners of Georgia. March 2011. Retrieved August 5, 2012.

[3] "2014 Georgia Code :: Title 48 - REVENUE AND TAXATION :: Chapter 8 - SALES AND USE TAXES :: Article 3 - COUNTY SALES AND USE TAXES :: Part 1 - COUNTY SPECIAL PURPOSE LOCAL OPTION SALES TAX". Retrieved 2015-09-14.

[ajc20120803-4] Chapman, Dan (2012-08-03). "Why 3 Georgia regions voted for T-SPLOST". The Atlanta Journal-Constitution. Retrieved August 6, 2012.

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