How SPLOST Works
SPLOST represents a democratic approach to local taxation and development, allowing communities to directly influence and benefit from specific improvement projects. Its success hinges on transparent management, effective communication, and alignment with the community's long-term vision.
Legal Framework
Audits and Reporting
Regular audits are conducted to ensure proper use of SPLOST funds. Annual or periodic reports are made public to maintain transparency.
Sunset Clause
Upon the expiration of the SPLOST, a new referendum is needed to extend it. If not extended, the tax ends, preventing indefinite taxation without public approval.
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Process Implementation
Voter Approval
SPLOST must be approved by a majority of voters in a local referendum. This ensures that the tax is levied only with the consent of the community.
Duration and Limit
The duration of a SPLOST is limited, often set to a maximum of five to six years, depending on the state laws. The tax automatically expires unless renewed by another referendum.
Project List
Before the referendum, the local government must prepare a specific list of projects that the SPLOST revenue will fund. This list must be shared with the public during the campaign for the referendum.
Collection and Allocation
Revenue Collection
SPLOST revenues are collected by the local government through the existing sales tax collection mechanisms.
Funds Segregation
The funds from SPLOST are kept separate from the general fund and other tax revenues to ensure that they are used only for the designated purposes.
Project Financing
SPLOST can be used to pay for projects outright, or it can be used to service debt incurred in financing large projects, allowing for immediate project commencement.
Project Planning and Execution
Project Prioritization
Local governments prioritize projects based on urgency, community impact, and other factors.
Public Involvement
Throughout the SPLOST period, the public is often involved in various stages of project planning and implementation. Regular updates and feedback channels are established for transparency.
Oversight and Management
A committee or designated public officials oversee the SPLOST program, ensuring that the funds are used as intended and projects are completed within budget and on time.
Challenges and Considerations
Equity and Fairness
There are considerations regarding the regressive nature of sales taxes and their impact on different segments of the population.
Long-Term Planning
Balancing immediate community needs with long-term infrastructure goals is crucial for effective SPLOST implementation.
Community Impact
Economic Impact
SPLOST can lead to improved infrastructure, which can attract businesses and boost local economies.
Quality of Life
Improved public facilities and infrastructure contribute to a higher quality of life for residents.
SPLOST FAQs
Find answers to frequently asked questions about the SPLOST program in Union County, GA.
See All FAQsThe terms SPLOST, ELOST, LOST, and TSPLOST refer to different types of local option sales taxes in the state of Georgia. Each serves a specific purpose and is used to fund different types of projects or needs within local communities. Here is a breakdown of each:
1. SPLOST (Special Purpose Local Option Sales Tax): This is a financing method for funding capital outlay projects proposed by a county government and municipal governments. Voters in a county must approve SPLOST through a referendum. The tax is collected for a specific period, typically five to six years, to fund specific capital projects like roads, bridges, schools, parks, and other public facilities.
2. ELOST (Education Local Option Sales Tax): Similar to SPLOST, this tax is specifically designated for educational purposes. It is often used to fund school system capital projects, such as building new schools, improving existing facilities, or purchasing new equipment and technology. Like SPLOST, it is implemented for a fixed term and must be approved by voters.
3. LOST (Local Option Sales Tax): This is a general sales tax used primarily to reduce property taxes. Unlike SPLOST and ELOST, which fund specific projects, LOST revenues go into the general fund of the local government and can be used for a variety of needs, including offsetting property taxes.
4. TSPLOST (Transportation Special Purpose Local Option Sales Tax): This is a variation of SPLOST, specifically aimed at funding transportation-related projects. It is used to finance road, bridge, and public transit projects within a county or group of counties. Like SPLOST and ELOST, it is time-limited and requires voter approval.
The Special Purpose Local Option Sales Tax (SPLOST) is a financing method for funding capital outlay projects in the county. It's important to understand that the need for SPLOST is closely tied to the ongoing development requirements of our community. As Union County continues to grow and evolve, there will always be a need for new infrastructure, improvements, and community enhancements. These can include roads, bridges, public facilities, parks, and emergency services equipment.
While it's conceivable that the specific projects funded by SPLOST may change over time, the fundamental need for a funding source like SPLOST is likely to persist. This is because infrastructure and community needs are continuously evolving. SPLOST allows for these essential projects to be funded without increasing property taxes, making it a vital tool for sustainable community development.
While the specific needs and projects may vary over time, the need for a funding mechanism like SPLOST to support the growth of our community infrastructure is expected to continue as long as our community keeps growing and evolving.
Unlike property taxes, which are based on property value, SPLOST is a sales tax applied to most consumer goods and services. It is a way to fund specific projects without increasing property taxes, and it is also paid by visitors and non-residents who shop in the county.
SPLOST (Special Purpose Local Option Sales Tax):
Purpose: SPLOST is a 1% sales tax imposed specifically to fund capital projects within a county, such as road improvements, public safety enhancements, parks, and public buildings.
Duration: SPLOST is temporary, typically lasting 5 to 6 years, and must be reapproved by voters for each new round of funding.
Approval: It is a voter-approved tax, meaning residents vote on whether to implement or continue the tax for a specific set of projects.
Use of Funds: The revenue generated from SPLOST can only be used for the specific projects listed on the ballot. It cannot be used for operating expenses or ongoing maintenance.
Other Local Taxes:
Property Tax: This is a tax on real estate, calculated based on the assessed value of property within the county. It is used to fund a wide range of local government services, including schools, police, fire services, and general government operations.
Local Option Sales Tax (LOST): LOST is another 1% sales tax, but unlike SPLOST, it is used to reduce property taxes and fund general government operations rather than specific capital projects.
Educational Special Purpose Local Option Sales Tax (E-SPLOST): Similar to SPLOST but specifically for funding educational infrastructure projects, such as building or renovating schools, purchasing technology, and improving facilities in the school district. E-SPLOST is also voter-approved and must be renewed periodically.
Hotel/Motel Tax: This is a tax on lodging, used primarily to promote tourism and fund local infrastructure that supports visitors, such as convention centers or marketing initiatives.
Key Differences:
Specificity: SPLOST is earmarked for specific capital projects, whereas other local taxes like property taxes and LOST can be used for a broader range of services and operations.
Duration and Approval: SPLOST is temporary and must be reapproved by voters, while other taxes like property taxes are ongoing and do not require voter reapproval.
Revenue Source: SPLOST and LOST are sales taxes, meaning they are paid by anyone who makes purchases in the county, including visitors, whereas property taxes are paid by property owners.
SPLOST is a targeted, project-specific tax, while other local taxes are broader in their application and purpose.
Yes, the City of Blairsville does receive funding from the Special Purpose Local Option Sales Tax (SPLOST). SPLOST is a financing method for funding capital outlay projects proposed by the county government and participating qualified municipal governments. In Union County, SPLOST funds are collected through a small percentage added to the sales tax on all eligible purchases within the county.
The distribution of SPLOST funds is based on an agreement among the participating entities, which typically include the county and its municipalities. The City of Blairsville, being a significant part of Union County, is included in this agreement and receives a portion of the SPLOST revenue. These funds are earmarked for specific projects that benefit the city, such as infrastructure improvements, facility upgrades, and other capital projects that have been identified and approved as part of the SPLOST program.
Union County currently has an IntergovernmentalAgreement (IGA) with the City of Blairsville, with a negotiated 8.5% of SPLOST collections going to the City of Blairsville after a 1% administration fee.
It's important to note that SPLOST funds must be used for capital projects and cannot be used for operational expenses. This means that while SPLOST can finance the construction or renovation of facilities, it cannot be used for salaries, utility bills, or general operating expenses of the city.
The City of Blairsville, in coordination with Union County, identifies and prioritizes projects that will be funded through SPLOST. These projects are typically outlined in a SPLOST referendum that voters approve. This ensures that the residents have a say in how these funds are utilized and allows for transparent and accountable management of taxpayer money.
The Special Purpose Local Option Sales Tax (SPLOST) is a program that allows counties to levy an additional sales tax for a specific period of time. The revenue generated from SPLOST is used to fund various projects and initiatives that benefit the community, such as enhancing the overall quality of life, enhancing public safety, and improving public infrastructure.