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 dmaine@fmglaw.com.