*The following information is intended for educational purposes only*
WHAT IS A SPLOST?
The Special Purpose Local Option Sales Tax (SPLOST) was enacted in 1985. The SPLOST was conceived and enacted as a county tax for funding capital projects. It is not a municipal tax, nor is it a joint county-municipal tax like the regular Local Option Sales Tax (LOST). As a county tax, a SPLOST can only be initiated by the board of commissioners.
WHAT IS A HOST AND EHOST?
In the 2015 Georgia Legislative Session, HB215 was adopted that provided an option to suspend the existing Homestead Option Sales Tax (HOST), replace it with an Equalized Homestead Option Sales Tax (EHOST), and add a one-cent Special Purpose Option Sales Tax.
The current HOST uses 80% of its proceeds to fund homestead exemptions from all County property tax funds except debt service for bonds and schools for taxpayers in owner-occupied, single family residences. This produces a differential benefit between unincorporated and incorporated DeKalb County taxpayers. To minimize the differential, cities receive a distribution from the 20% of HOST proceeds set aside for capital improvements. With the incorporation of new cities, the County receives almost no capital funding from HOST proceeds.
If EHOST replaces the HOST, then 100% of the proceeds from EHOST would fund homestead exemptions from DeKalb County property tax funds for general county operations and the hospital authority in owner-occupied, single family residences. This eliminates the differential benefit between unincorporated and incorporated DeKalb County taxpayers because all taxpayers pay the same tax rates for these services.
Currently, HOST revenue to the City covers debt service payments for improvements to Fire Station #1, Decatur Recreation Center, Public Works building and the Beacon Municipal Complex in addition to funding some capital projects. If EHOST is approved, the HOST funding would be eliminated. If approved, the SPLOST proceeds would replace the HOST funding.
WHAT IS THE PROCESS FOR DECIDING HOW THE FUNDS WILL BE SPENT?
The Legislation, SB 156, determines how the SPLOST proceeds must be spent and DeKalb will comply with the rules included in the legislation.
WHEN WAS DEKALB SPLOST BILL PASSED?
The SPLOST bill was passed by the Georgia General Assembly on March 30, 2017.
WHEN DID THE GOVERNOR SIGN THE BILL INTO LAW?
Senate Bill 156 (SPLOST/EHOST Bill) was signed by Governor Deal on May 8, 2017.
HOW LONG CAN A SPLOST LAST?
Several factors determine the length of time that a SPLOST may be imposed. In general, the tax may be levied for up to five years. If the county and municipalities enter into an intergovernmental agreement, the tax may be imposed for six years.
WHO ESTABLISHED THE REVENUE ESTIMATES FOR SPLOST?
The county is responsible for estimating the SPLOST revenues expected to be collected over the life of the SPLOST, as well as the costs of all projects to be financed.
HOW MUCH DETAIL IS REQUIRED IN THE SPLOST REFERENDUM?
The SPLOST law requires that the purpose or purposes (i.e., the capital outlay projects) for which SPLOST revenues will be used be written on the ballot. The degree of specificity is left to the county or municipality imposing the SPLOST.
WILL SPLOST, EHOST AND HOST BE ON THE BALLOT?
YES. Citizens will vote on whether to approve a SPLOST and whether to suspend HOST and replace it with an EHOST.
HOW WILL THE EHOST AFFECT THE CITY’S BUDGET?
If the referendum passes, the impact on the city’s budget will be manageable because the estimated SPLOST funding is only slightly less than the current HOST funding. In addition, the current HOST funding is anticipated to decline with the addition and growth of cities in DeKalb. In summary, the referendum includes a vote on replacing HOST with an EHOST (Equalized Homestead Option Sales Tax) and the imposition of a SPLOST. The EHOST should reduce county taxes for City of Decatur taxpayers in owner-occupied, single family residences. The SPLOST would serve to replace the city’s current HOST revenue.
WHAT CAN THE FUNDS BE SPENT ON?
Roads & Transportation projects, Public Safety projects, and Capital Outlay Projects.
WILL THERE BE A LIST OF PROJECTS?
Yes, the Decatur City Commission approved the list of projects on September 18, 2017. If the SPLOST is approved, proceeds allocated to the City of Decatur will be used for the following projects:
• improvements to the Atlanta Avenue/West Howard Avenue/West College Avenue intersection, which is the last intersection improvement project from the 2007 Community Transportation Plan,
• bicycle, pedestrian and traffic calming improvements,
• and debt service on recent city facility improvements.
