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 FAQsUnlike 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.
Our Special Purpose Local Option Sales Tax (SPLOST) has proven to be a significant source of revenue for Union County. Union County’s monthly average in our current SPLOST is $617,892, which averages just over $7.4 million in year. This substantial amount reflects our community's active participation and contribution toward the development and betterment of our County.
Furthermore, since the inception of the current SPLOST, we've successfully secured $3.5 million in matching funds. This additional financial support amplifies the impact of our SPLOST, enabling us to undertake larger and more beneficial projects for our community.
These funds play a crucial role in financing a variety of public projects, ranging from infrastructure improvements to enhancing public facilities, all aimed at elevating the quality of life in Union County.
If you are interested in getting involved in the SPLOST program, there are several ways to participate. You can attend public meetings and hearings to voice your opinions and suggestions, join community organizations that advocate for specific projects or initiatives, and stay informed about upcoming SPLOST-related events and opportunities to provide input.
If 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.
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.