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.
.png)
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 FAQsIf SPLOST revenue exceeds projections, the excess funds must still be used for the specified projects. If all projects are completed and funds remain, they may be used for other capital projects as long as they fall within the scope of the original SPLOST referendum.
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.
The 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.
No, there is no specified limit or cap on the amount that can be collected through SPLOST. Unlike ELOST (Education Local Option Sales Tax) and TSPLOST (Transportation Special Purpose Local Option Sales Tax), which have defined caps on their collections, SPLOST does not have a predetermined maximum collection amount. SPLOST is designed to fund specific projects as outlined in its proposal, and the collection continues until the project requirements are met or the specified duration ends, whichever comes first. This approach ensures that the necessary funds are raised to support vital community projects and improvements without an arbitrary financial ceiling.
The projects funded by SPLOST vary depending on the needs and priorities of the county. Some common projects include road and bridge improvements, park and recreation facility upgrades, public safety equipment and facilities, and community development initiatives. The specific projects are determined through a collaborative process involving community input and the county government.