Local Governments Should Consider SPLOST Tax in Difficult Economic Conditions
By Dana Maine and William J. Linkous, III

Many local governments are feeling the budgetary pinch of the down economy. Local governments should be aware that Georgia law provides an excellent economic vehicle to fund capital outlay projects during tough economic times called a SPLOST tax. SPLOSTs are advantageous because they spread tax liability to non-residents, allowing them to continue funding improvements without raising property taxes.

SPLOST taxes are created under the authority of O.C.G.A. § 48-8-110 et seq. A SPLOST tax is a 1% sales tax assessed at the time that a consumer purchases certain items within the special tax district. SPLOST taxes can be implemented only for capital outlay projects. Capital outlay projects are generally major, permanent, or long-lived improvements or betterments, such as land, structures, and vehicles. A SPLOST tax can be imposed for no more than six years.

SPLOST taxes can only be passed by a referendum of the voters in the jurisdiction affected. General obligation debt in the form of bonds can be issued in conjunction with the imposition of a SPLOST tax, provided that the general obligation debt is included during the process of creating of the SPLOST tax.

For more information, contact Ms. Maine at [email protected] or Mr. Linkous at [email protected].


Supreme Court Issues Three Important Decisions

Requirements on Developers and Public Water Authorities

The Evolving Duty to Settle: A Foundation Made of Shifting Sand

Legislative Update

Local Governments Should Consider SPLOST Tax in Difficult Economic Conditions

Learn more about FMG

CGL and Business Liability

Commercial and Complex Litigation

Construction and Design Law

Financial Services and Securities

Insurance Coverage and Extra-Contractual Liability

Government Law

Labor and Employment Law

Professional Liability / Errors and Omissions

Freeman Mathis & Gary, LLP
100 Galleria Parkway
Suite 1600
Atlanta, Georgia 30339-5948

Tel: 770.818.0000 / Fax: 770.937.9960


Copyright © 2016 Freeman Mathis & Gary, LLP Click here to print the article.