Special-purpose local-option sales tax
Encyclopedia
In the U.S. state
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...

 of Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...

, a special-purpose local-option sales tax (SPLOST) can be levied by any county, for the purpose of funding
Funding
Funding is the act of providing resources, usually in form of money , or other values such as effort or time , for a project, a person, a business or any other private or public institutions...

 the building
Building
In architecture, construction, engineering, real estate development and technology the word building may refer to one of the following:...

 and maintenance
Maintenance, Repair and Operations
Maintenance, repair, and operations or maintenance, repair, and overhaul involves fixing any sort of mechanical or electrical device should it become out of order or broken...

 of park
Park
A park is a protected area, in its natural or semi-natural state, or planted, and set aside for human recreation and enjoyment, or for the protection of wildlife or natural habitats. It may consist of rocks, soil, water, flora and fauna and grass areas. Many parks are legally protected by...

s, school
School
A school is an institution designed for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is commonly compulsory. In these systems, students progress through a series of schools...

s, road
Road
A road is a thoroughfare, route, or way on land between two places, which typically has been paved or otherwise improved to allow travel by some conveyance, including a horse, cart, or motor vehicle. Roads consist of one, or sometimes two, roadways each with one or more lanes and also any...

s, and other public facilities. Georgia's state sales tax
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....

 is currently 4% (groceries and prescription drug
Prescription drug
A prescription medication is a licensed medicine that is regulated by legislation to require a medical prescription before it can be obtained. The term is used to distinguish it from over-the-counter drugs which can be obtained without a prescription...

s exempted), with the counties allowed to add up to 2% more for SPLOST.

A SPLOST is passed by a county commission
County commission
A county commission is a group of elected officials charged with administering the county government in local government in some states of the United States. County commissions are usually made up of three or more individuals...

, usually with the agreement of its city council
City council
A city council or town council is the legislative body that governs a city, town, municipality or local government area.-Australia & NZ:Because of the differences in legislation between the States, the exact definition of a City Council varies...

s, and voted up or down by residents in a referendum
Referendum
A referendum is a direct vote in which an entire electorate is asked to either accept or reject a particular proposal. This may result in the adoption of a new constitution, a constitutional amendment, a law, the recall of an elected official or simply a specific government policy. It is a form of...

, usually during the next scheduled election
Election
An election is a formal decision-making process by which a population chooses an individual to hold public office. Elections have been the usual mechanism by which modern representative democracy operates since the 17th century. Elections may fill offices in the legislature, sometimes in the...

. A SPLOST only lasts five years, and always begins and ends with a full calendar quarter. At that time, if the funds are still needed, it must be voted upon again. All expenditures of SPLOST funds must be in compliance with Article VIII, Section VI, Paragraph IV of the Georgia Constitution
Georgia (U.S. state) Constitution
The Constitution of the State of Georgia is the governing document of the U.S. state of Georgia. The constitution outlines the three branches of government in Georgia. The legislative branch is embodied in the bicameral General Assembly. The executive branch is headed by the Governor. The judicial...

, and Official Code of Georgia Annotated (O.C.G.A.) Section 48-8-141. Each SPLOST must define the projects on which the money is to be used, hence the designation of a "special purpose" tax. If enough money is raised before the full term of the tax, it may be ended at the end of an earlier calendar quarter.
  • One SPLOST (1%) may be used to increase the homestead exemption
    Homestead exemption
    Homestead exemption is a legal regime designed to protect the value of the homes of residents from property taxes, creditors, and circumstances arising from the death of the homeowner spouse...

     for property tax
    Property tax
    A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...

    es (sometimes called a HOST, or homestead-option sales tax).
  • A SPLOST is not required to exempt groceries (and almost none do), but still cannot be applied to prescriptions.
  • Cities are normally not allowed to levy sales taxes, they instead share proportionately with their county, according to how much was collected within respective city limits and unincorporated area
    Unincorporated area
    In law, an unincorporated area is a region of land that is not a part of any municipality.To "incorporate" in this context means to form a municipal corporation, a city, town, or village with its own government. An unincorporated community is usually not subject to or taxed by a municipal government...

    s. Cities can have a separate tax if the county does not participate. Early on, in the 1970s, Dalton
    Dalton, Georgia
    Dalton is a city in Whitfield County, Georgia, United States. It is the county seat of Whitfield County and the principal city of the Dalton, Georgia Metropolitan Statistical Area, which encompasses all of both Murray and Whitfield counties. As of the 2010 census, the city had a population of 33,128...

     had its own tax. The county (Whitfield
    Whitfield County, Georgia
    Whitfield County is a county located in the U.S. state of Georgia. It was created on December 30, 1851. The 2010 Census shows a population of 102,599. The county seat is Dalton.It is part of the Dalton, Georgia, Metropolitan Statistical Area.-Civil War:...

    ) sue
    Lawsuit
    A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...

    d and won the right to take over the tax.
  • Since 2004, Atlanta
    Atlanta, Georgia
    Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...

     charges a city sales tax of 1% to separate and repair its old sewer
    Sanitary sewer
    A sanitary sewer is a separate underground carriage system specifically for transporting sewage from houses and commercial buildings to treatment or disposal. Sanitary sewers serving industrial areas also carry industrial wastewater...

    s and storm drain
    Storm drain
    A storm drain, storm sewer , stormwater drain or drainage well system or simply a drain or drain system is designed to drain excess rain and ground water from paved streets, parking lots, sidewalks, and roofs. Storm drains vary in design from small residential dry wells to large municipal systems...

    s. This does not count against the 3% cap on SPLOST/LOST/HOST taxes, and was sometimes called a MOST (municipal-option sales tax).
  • Like the sewer tax, the MARTA
    Metropolitan Atlanta Rapid Transit Authority
    The Metropolitan Atlanta Rapid Transit Authority or MARTA is the principal rapid-transit system in the Atlanta metropolitan area and the ninth-largest in the United States. Formed in 1971 as strictly a bus system, MARTA operates a network of bus routes linked to a rapid transit system consisting...

     sales tax is separate and not considered a SPLOST.
  • The state has been divided into ten regions, which will each vote on a TSPLOST for transportation needs in 2012. This also does not count against the 3% cap on SPLOST/LOST/HOST taxes.

Counties and school systems are required to provide an independent accountant
Accountant
An accountant is a practitioner of accountancy or accounting , which is the measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and others make decisions about allocating resources.The Big Four auditors are the largest...

s' report, examining the way the funds were allocated and attesting to the fact that the system receiving funds managed those funds appropriately. School taxes are not technically considered a SPLOST, but are essentially managed the same way, with referendum dates and lists of projects to be funded being approved by county (and if applicable, city) school boards instead of county commissions and city councils.
SPLOST mainly contributes money to Gwinnett County Public Schools(GCPS), and Buford City Schools.Buford is part of GCPS, but for some reasons it has its own school district.
All sales taxes in Georgia are in whole percents, there are no fractional or decimal percents.
Since 1997, GCPS has benefitted from a special purpose local option sales tax, or SPLOST, for education. Since 1997, SPLOST has provided GCPS students with thousands of needed classrooms in 46 new schools and dozens of school additions, as well as technology improvements that are essential to world-class teaching and learning.

The current SPLOST for schools, SPLOST III, will expire June 30, 2012. Recently, the Gwinnett County Board of Education approved asking voters to keep the one-cent SPLOST for another five years. The extension of the current SPLOST will appear on the November 8, 2011, ballot. Key facts regarding this SPLOST:
Anticipated revenue of $876 million (By law, Buford will get $17.1 million based on their student enrollment, leaving GCPS with $858.9 million.)
Projects include 5 new schools, 1 bus facility, and 9 additions and renovations.
Also included is air conditioning for all middle and high school gyms and all elementary activity buildings, along with all kitchens that currently do not have air conditioning.
Significant technology upgrades including retrofits for all schools and infrastructure support and digital content to expand the walls of the classroom and make learning more engaging and relevant to today's world. Also, recently the vote(GA only)or SPLOST has passed, concluding that schools will continue to be benefited.
Facility improvements to address preventive maintenance that has been postponed due to budget cuts (roofing, painting, carpeting, etc.)(cite from
http://www.gwinnett.k12.ga.us/gcps-mainweb01.nsf/pages/SPLOSTIV_ThePlan)
The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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