County Commissioner's Office

County Talk
By
Lamar Paris - Commissioner

SPLOST Sales Tax continued

Q. Is the SPLOST sales tax a new tax?
A. NO. It is simply a continuation of our regular sales tax that has been in effect since 1986.

Q. Why do we have to vote on the SPLOST?
A. State law requires that every five or six years the public must vote on continuing the sales tax.

Q. When is the SPLOST sales tax election?
A. It is February 5th, the first Tuesday in February and the same time we vote on the presidential preference primary.

Q. How much is the sales tax?
A. We all pay 7% sales tax and that is the case in the majority of counties in Georgia. 4% goes to the state of Georgia, 1% (E-SPLOST) goes to the school system, 1% (LOST) goes to the county operation and is a direct reduction on your property tax bill. The final 1% SPLOST, is for capital projects and road and bridge construction only. It can not be used for operation cost.

Q. Who pays the SPLOST sales tax?
A. Every person who purchases anything in the county. In addition, no matter where you purchase your new vehicle, that sales tax also comes to Union County. So those tourist and people just passing through have a significant impact in helping us fund our county.

Q.  It was repeated to me that someone said they would vote against the SPLOST because every time we build something new, it would take more tax money, more upkeep and more employees. Is this really what happens?
A. It is certainly true that a new building will cost additional funds to operate and in some cases may require additional employees. That will certainly be the case with the jail expansion.  The operation cost will certainly increase.  But why would someone vote against SPLOST knowing that the jail must be built with or without SPLOST sales tax money and knowing that if the SPLOST failed, the county property tax payers would have to foot the bill with increased property taxes? Who would want that?

However, in most cases, the growth of the county supports these increased costs without tax increases.  For example, we completed the new courthouse this past year, yet we were able to reduce our county expenses (budget) and taxes this year because of the growth in the county.  Our utility bill doubled and some additional employees were necessary, but we still were able to have a budget cut and tax decrease.

Q. How much do out of town people contribute to our SPLOST sales tax?
A. The number of 40% has always been used, but I have no idea except to say that it is a significant amount of sales tax that people pay that do not live here, yet they help us pay for our county operation and projects.

Q. How would Wal-Mart impact our sales tax?
A. In preparing our estimates for sales tax receipts, Wal-Mart was not considered.  However, if they locate here, it would be phenomenal and would more than likely far exceed all of our SPLOST estimates.  If Wal-Mart comes and we do not pass our sales tax, we would lose much of the benefit of a Wal-Mart.  Now we send much of our sales tax money to Murphy, N.C. when we visit their Wal-Mart.   

Q. Will we have a Wal-Mart in Union County?
A. While I can certainly not guarantee it, their closing date on the property is set for the middle of February.  They have submitted their plans for approval.  If they purchase the property, we will then know that it is a done deal.  Until that time, we do not want to count our chickens before they hatch. 

Q. We read in an ad in the NGN last week that someone is encouraging the citizens to vote against the SPLOST because they claim that you are wasting the money on pork barrel projects and they indicated that only five of the nearly 30 projects were worthwhile? Is that true?
A. In my opinion, anyone misrepresenting me and the county SPLOST in this manner is just plain showing a total lack of understanding of the operation of county government.  It is inconceivable to me that a person would cut off their nose to spite their face. In other words, while the majority of the SPLOST projects will directly save property tax money, how could someone suggest that these were all pork barrel projects?  These are all very important projects to different users of our government facilities.  While you may not ride a horse or ever go to a horse show, for the young kids and disabled population who use the facility on a regular basis, I can assure you that it is very important and certainly worthwhile.

Q. Who decided on the projects that would be presented with the SPLOST?
A.  Many people worked on the list of projects.  The idea was to include as many projects as possible that would directly reduce property taxes such as roads and bridges, Sheriff’s vehicles, fire engines, ambulances, renovation or expansion of the Senior Center, Civic Center and county annex and the City of Blairsville’s $2,000,000 worth of projects that will help their taxpayers.  Then the jail is included because it will have to be expanded with property tax dollars if not SPLOST dollars.   Then the balance of the projects were selected to enhance the quality of life of our citizens and to make this a more attractive county in which to live, work, visit and recreate. 

Q. Why are we voting on the new SPLOST a year early?
A. I have answered this before, but I have received some additional information.  Once a SPLOST is passed, it can not take effect for a minimum of 80 days or the beginning of the next calendar quarter which ever is greater.  Then it usually takes about three additional months for the taxes to come up to full amount and then the state holds back two months for payments.  So if we do not vote on the SPLOST soon, then even if it passes we could lose several months of collections.  The later in the year we wait, the more likely that is.  The upcoming presidential election offered the easiest and most practical time to place it on the ballot. 

Q.   What would be the impact to Union County should the sales tax fail?
A.   It would simply be devastating. Union County would be stopped in our tracks. Certainly, property taxes would increase dramatically, but that is not the worst.  We would be in a permanent stand still mode.  While a large portion of our SPLOST goes toward roads and bridges, the unseen part is that this not only saves property tax funds, but allows us to do so much more with our existing property tax money. Everything nice that Union County has is a result of SPLOST sales tax funds. Without them, we would simply be just existing like many South Georgia towns with no quality of life.

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