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 FAQsYes, voters do have the opportunity to vote on the Special Purpose Local Option Sales Tax (SPLOST). SPLOST is a financing method for funding capital outlay projects in the county that is approved by local voters. Essentially, it is a program that allows the county to collect an additional sales tax, typically 1%, that is used specifically for predetermined projects such as building new schools, improving roads, or developing parks.
Before a SPLOST can be implemented, it must first be approved by a majority of the county's voters in a referendum. This referendum is usually held in conjunction with other local, state, or federal elections to ensure a broad base of voter participation. The referendum includes detailed information about the specific projects that the SPLOST revenue will fund, giving voters a clear understanding of where their tax dollars will be spent.
SPLOST is a democratic process where voters have a direct say in whether or not they want to implement this additional sales tax for the benefit of their community's infrastructure and development projects.
No, Union County has not designated any Level One projects. While some of the Union County SPLOST projects have been eligible to be designated as Level One projects, the county did not designate them as such in the ballot question or the IGA documents.
SPLOST funds are designated for specific capital projects and improvements as voters approve. According to the regulations governing SPLOST, these funds cannot be directly allocated to Emergency Medical Services (EMS) operational expenses.
However, SPLOST funds can be utilized for capital expenditures within the Emergency Management Agency (EMA), a distinct entity focused on preparing for, responding to, and recovering from disasters and emergencies within the community. This can include infrastructure improvements, purchasing of emergency vehicles, and other capital projects that indirectly support the broader emergency response framework, including EMS operations.
The Union County Emergency Management Agency is a Local Emergency Management Agency https://gema.georgia.gov/locations/union
The process for selecting projects for the SPLOST ballot in Union County involves a comprehensive and community-oriented approach. It includes the following key steps:
- Community Input and Needs Assessment: The County starts by gathering input from community members, local businesses, and key stakeholders. Public forums, surveys, and meetings are conducted to understand the community’s priorities and needs.
- Collaboration with Departments: Various County departments, such as transportation, education, public works, and emergency services, submit proposals for projects that require funding. These proposals are based on long-term planning, infrastructure needs, and community services enhancement.
- Feasibility and Impact Analysis: Each project proposal undergoes a thorough analysis to assess its feasibility, cost-effectiveness, and potential impact on the community. This includes evaluating the benefits, projected costs, and long-term sustainability.
- Prioritization and Selection: The County officials, often in collaboration with a committee or advisory group, prioritize the projects based on the community's needs, potential impact, and available funding. This process ensures that the most critical and beneficial projects are selected.
- Legal and Compliance Review: Before finalizing the list, each project is reviewed for legal compliance and alignment with SPLOST regulations. This step ensures that all projects meet statutory requirements.
- Drafting Ballot Language: Once the projects are finalized, the County drafts clear and precise language for the SPLOST ballot. This language is designed to be easily understood by voters, outlining the purpose and scope of each project.
- Public Awareness and Education: Before the referendum, the County undertakes an educational campaign to inform the public about the proposed SPLOST projects. This includes providing detailed information on how the funds will be used and the expected benefits to the community.
By following these steps, Union County ensures that the projects selected for the SPLOST ballot are in line with community needs and priorities, offering transparency and accountability in the use of taxpayer funds.
If a Special Purpose Local Option Sales Tax (SPLOST) referendum fails, it means that the proposed sales tax increase has not been approved by the voters of the county. In this scenario, several outcomes can occur:
- Projects on Hold or Cancelled: The projects or improvements that were to be funded by the SPLOST revenues will likely be put on hold or cancelled. This includes infrastructure projects, public facilities, transportation improvements, and other community development initiatives.
- Alternative Funding Sources: The county government may need to explore alternative funding sources to finance these projects. This could include reallocating existing budget funds, seeking state or federal grants, or implementing other forms of taxation or revenue generation.
- Impact on Budget and Services: Without the additional revenue from SPLOST, the county might have to make difficult budgetary decisions. This could potentially lead to reductions in services or delaying improvements to existing infrastructure.
- Future Referendums: The government may choose to propose a new SPLOST referendum in the future, potentially with revised projects or terms that might be more acceptable to voters.
- Public Engagement: The failure of a SPLOST referendum often leads to increased public engagement and discussion regarding county priorities and fiscal management. It provides an opportunity for government officials to better understand the needs and concerns of their constituents.
- Reassessment of Needs and Priorities: The county might reassess its needs and priorities based on the feedback received during the referendum process. This could lead to adjustments in future planning and budgeting processes.
The failure of a SPLOST referendum requires the county to reconsider and adjust its financial and strategic planning to ensure the continued delivery of services and the advancement of community projects.