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Thursday, March 22, 2007
splost: what sort of things must funds be earmarked for...
for you to approve the next splost vote for county, school projects.
will your vote for approval require a pledge from local government to cut property taxes?
15 comments:
Anonymous
said...
Before I can vote for any SPLOST funding, I need to feel comfortable that the county is going to use the funds as they have been earmarked. No more talks of borrowing SPLOST funds to cover non-SPLOST budget shortfalls. No more secretly transferring SPLOST funded agencies from the county to the city.
Until I am sure my SPLOST sales tax money is spent properly, I will have to vote against all SPLOST projects.
You know - the SPLOST funds from the Ag Authority was suppose to be returned to the county and could have been used for the purpose of reducing taxes. That is spelled out in the SPLOST Guide - A Guide For County Officials.
Why would I want to vote for something that the officials can't even manage properly when everything is spelled out for them? All the money for roads I guess was misused somewhere else. We need an audit and maybe one of us out there can figure out how to initiate it. Searching....
I feel that SPLOST funds have been miss used, by govt groups borrowing from them and not using the funds for what they are for. Additionally the AG Center Funds should be returned to the tax payers.
SPLOST is nothing more than a way to pick the taxpayers pocket. If there were no federal witholding and you had to pay your income tax in one big lump, there would be immediate tax revolt. People would demand the federal government live within its means. If county and city officials knew that they would have to justify increased spending to property holders in the form of increased property taxes, I expect the cost of government would go down. Instead we now have temporary sales taxes. One was to fund a jail. Jail built, but tax renewed. It will be the same with SPLOST which will become PSPLOST...Permanent Special local option sales tax.
wdm what do you mean if it does pass. you been paying it for years. are you one of those that can never say enough is enough and just keep shoving it in.
Nobody in their right mind should even begin to believe that if SPLOST is passed that property taxes would go down! Even if the millage rate were to be decreased, all of our properties would be re-appraised at a higher value to compensate for the millage decrease.
We have had the maximum SPLOST for years and our property taxes have gone up. I don't see an appreciable amount of improvement to warrant continuing to pay this tax. Almost every county already maxes out on the tax, but you know what, its still not enough. Families have to live within their means, why not governments. There is too much waste and idleness built into governments. If companies were run like this they would close down and declare bankruptcy.
We have had the maximum SPLOST for years and our property taxes have gone up. I don't see an appreciable amount of improvement to warrant continuing to pay this tax. Almost every county already maxes out on the tax, but you know what, its still not enough. Families have to live within their means, why not governments. There is too much waste and idleness built into governments. If companies were run like this they would close down and declare bankruptcy.
No matter what they claim, governments have never seen a tax they do not like, and their favorites are those like sales taxes that run under the daily radar. Death by a 1000 cuts.
SPLOST tax is imposed when the county board of commissioners or sole commissioner1 calls a local referendum in conformance with O.C.G.A. § 48-8-111 and the referendum is subsequently passed by the voters within that special district, i.e., county.
It is not a municipal tax; nor is it a joint county-municipal tax like the regular Local Option Sales Tax (LOST).
The county voters must approve the tax by a simple majority for the SPLOST to take effect.
O.C.G.A. § 48-8-111 (c) specifies the ballot language that must be used. The ballot language must include the total estimated revenue amount, a general list of all proposed projects, and the time period of tax imposition in calendar years or quarters.
Can SPLOST revenues be used to build local schools?
No. A separate Education SPLOST (ESPLOST) for school construction is available to boards of education. A school system’s one percent ESPLOST levy does not count against the county’s two percent local option sales tax cap.
Can SPLOST funds be used to reduce property taxes?
Yes, but not directly. Although counties cannot directly include a property tax rollback as an eligible expenditure on their referendum, counties can use SPLOST funds to pay for capital outlay projects that would otherwise be funded through property tax revenues.
Can SPLOST funds be borrowed to pay for other county services or projects and paid back later from the general fund?
No. SPLOST funds may only be used for capital outlay projects approved by the voters in a SPLOST referendum. Furthermore, SPLOST funds must be held in a separate account from other funds of the county or municipality and cannot in any manner be commingled with any other funds until spent on the approved projects (O.C.G.A. § 48-8-121 (a)).
Can a county or municipality change its mind and not fund one or more of the SPLOST projects despite voter approval in a referendum?
No. In a 1992 decision, the Georgia Supreme Court ruled that the governing authority was obliged to use proceeds from the SPLOST tax for the projects approved in the SPLOST referendum.
The Court held that the governing authority …is bound by the SPLOST budget and account reports to complete all projects listed therein unless circumstances arise which dictate that projects which initially seemed feasible are no longer so. In this regard, the governing authority has discretion to make adjustments in the plans for these projects, but may not abandon the projects altogether. Dickey v. Storey, 262 Ga. 452 (1992).
The Supreme Court, in the same ruling, recognized that the county could not use SPLOST funds for a project that had not been approved by the voters, noting that under O.C.G.A.§ 48-8-121(a) proceeds from the SPLOST …shall be used exclusively for the purpose or purposes specified in the resolution or ordinance calling for imposition of the tax.
If an approved SPLOST project becomes “infeasible,” what happens?
The Georgia Supreme Court has recognized that a project could be affected by circumstances outside the control of a governing authority. It is possible that those circumstances could make an approved project infeasible even though the project was considered feasible when it was proposed and approved. When that happens, the governing authority can make adjustments to the project to enhance its feasibility, but the project cannot be abandoned. Dickey v. Storey, 262 Ga. 452 (1992).
It is clear from the Dickey case, that there must be some intervening circumstance outside the control of the county or municipality before it would be considered infeasible.
In contrast, diminished support for a project among the elected officials, a shortfall in SPLOST revenues, or increased project costs would not likely be sufficient for a project to cross the threshold from feasible to infeasible. Likewise, a technical problem in constructing a facility would not make a project infeasible so long as there is a reasonable engineering solution to the problem.
Can excess proceeds be used to pay debt of a local authority?
No. Excess proceeds may not be used to reduce existing debt of an authority whether it is a development authority, water authority, housing authority or any other type of local authority.
In my opinion the following is cut and dry. An authority had NO authority to hand over SPLOST funds to anyone.
§ 48-8-121. Use of proceeds; maintenance of separate account; record keeping; audit; use for road, street and bridge purposes; issuance of general obligation debt; distribution of excess proceeds. (g) (2) Unless otherwise provided in this part or in an intergovernmental agreement entered into pursuant to this part, excess proceeds subject to this subsection shall be used solely for the purpose of reducing any indebtedness of the county within the special district other than indebtedness incurred pursuant to this part. If there is no such other indebtedness or, if the excess proceeds exceed the amount of any such other indebtedness, then the excess proceeds shall next be paid into the general fund of the county within the special district, it being the intent that any funds so paid into the general fund of the county be used for the purpose of reducing ad valorem taxes.
Regarding Ag Authority SPLOST handed over to the city.
How can the City of Barnesville be holding the county’s SPLOST funds legally? Are they not in possession of stolen property belonging to the citizens of Lamar County?
The best way to teach our local government how to properly use SPLOST is to take it away from them for a year. Only the people can do that. And if government wants to increase taxes in an attempt to get even - VOTE THEM OUT OF OFFICE.
Either way you see it - the power still rest with the people that cast the votes.
15 comments:
Before I can vote for any SPLOST funding, I need to feel comfortable that the county is going to use the funds as they have been earmarked. No more talks of borrowing SPLOST funds to cover non-SPLOST budget shortfalls. No more secretly transferring SPLOST funded agencies from the county to the city.
Until I am sure my SPLOST sales tax money is spent properly, I will have to vote against all SPLOST projects.
I'm all for SPLOST if it will fund much needed renovations to Lamar County High School!
You know - the SPLOST funds from the Ag Authority was suppose to be returned to the county and could have been used for the purpose of reducing taxes. That is spelled out in the SPLOST Guide - A Guide For County Officials.
Why would I want to vote for something that the officials can't even manage properly when everything is spelled out for them? All the money for roads I guess was misused somewhere else. We need an audit and maybe one of us out there can figure out how to initiate it. Searching....
I feel that SPLOST funds have been miss used, by govt groups borrowing from them and not using the funds for what they are for. Additionally the AG Center Funds should be returned to the tax payers.
I don't know how much property taxes will go down if SPLOST does pass...but I guarantee property taxes will go up if it doesn't get voted in.
SPLOST is nothing more than a way to pick the taxpayers pocket. If there were no federal witholding and you had to pay your income tax in one big lump, there would be immediate tax revolt. People would demand the federal government live within its means. If county and city officials knew that they would have to justify increased spending to property holders in the form of increased property taxes, I expect the cost of government would go down. Instead we now have temporary sales taxes. One was to fund a jail. Jail built, but tax renewed. It will be the same with SPLOST which will become PSPLOST...Permanent Special local option sales tax.
wdm what do you mean if it does pass. you been paying it for years. are you one of those that can never say enough is enough and just keep shoving it in.
Nobody in their right mind should even begin to believe that if SPLOST is passed that property taxes would go down! Even if the millage rate were to be decreased, all of our properties would be re-appraised at a higher value to compensate for the millage decrease.
We have had the maximum SPLOST for years and our property taxes have gone up. I don't see an appreciable amount of improvement to warrant continuing to pay this tax. Almost every county already maxes out on the tax, but you know what, its still not enough. Families have to live within their means, why not governments. There is too much waste and idleness built into governments. If companies were run like this they would close down and declare bankruptcy.
We have had the maximum SPLOST for years and our property taxes have gone up. I don't see an appreciable amount of improvement to warrant continuing to pay this tax. Almost every county already maxes out on the tax, but you know what, its still not enough. Families have to live within their means, why not governments. There is too much waste and idleness built into governments. If companies were run like this they would close down and declare bankruptcy.
No matter what they claim, governments have never seen a tax they do not like, and their favorites are those like sales taxes that run under the daily radar. Death by a 1000 cuts.
SPLOST tax is imposed when the county board of commissioners or sole commissioner1 calls a local referendum in conformance with O.C.G.A. § 48-8-111 and the referendum is subsequently passed by the voters within that special district, i.e., county.
It is not a municipal tax; nor is it a joint county-municipal tax like the regular Local Option Sales Tax (LOST).
The county voters must approve the tax by a simple majority for the SPLOST to take effect.
O.C.G.A. § 48-8-111 (c) specifies the ballot language that must be used.
The ballot language must include the total estimated revenue amount, a general list of all proposed projects, and the time period of tax imposition in calendar years or quarters.
Can SPLOST revenues be used to build local schools?
No. A separate Education SPLOST (ESPLOST) for school construction is available to boards of education. A school system’s one percent ESPLOST levy does not count against the county’s two percent local option sales tax cap.
Can SPLOST funds be used to reduce property taxes?
Yes, but not directly. Although counties cannot directly include a property tax rollback as an eligible expenditure on their referendum, counties can use SPLOST funds to pay for capital outlay projects that would otherwise be funded through property tax revenues.
Can SPLOST funds be borrowed to pay for other county services or projects and paid back later from the general fund?
No. SPLOST funds may only be used for capital outlay projects approved by the voters in a SPLOST referendum. Furthermore, SPLOST funds must be held in a separate account from other funds of the county or municipality and cannot in any manner be commingled with any other funds until spent on the approved projects (O.C.G.A. § 48-8-121 (a)).
Can a county or municipality change its mind and not fund one or more of the SPLOST projects despite voter approval in a referendum?
No. In a 1992 decision, the Georgia Supreme Court ruled that the governing authority was obliged to use proceeds from the SPLOST tax for the projects approved in the SPLOST referendum.
The Court held that the governing authority …is bound by the SPLOST budget and account reports to complete all projects listed therein unless circumstances arise which dictate that projects which initially seemed feasible are no longer so. In this regard, the governing authority has discretion to make adjustments in the plans for these projects, but may not abandon the projects altogether. Dickey v. Storey, 262 Ga. 452 (1992).
The Supreme Court, in the same ruling, recognized that the county could not use SPLOST funds for a project that had not been approved by the voters, noting that under O.C.G.A.§ 48-8-121(a) proceeds from the SPLOST …shall be used exclusively for the purpose or purposes specified in the resolution or ordinance calling for imposition of the tax.
If an approved SPLOST project becomes “infeasible,” what happens?
The Georgia Supreme Court has recognized that a project could be affected by circumstances outside the control of a governing authority. It is possible that those circumstances could make an approved project infeasible even though the project was considered feasible when it was proposed and approved. When that happens, the governing authority can make adjustments to the project to enhance its feasibility, but the project cannot be abandoned. Dickey v. Storey, 262 Ga. 452 (1992).
It is clear from the Dickey case, that there must be some intervening circumstance outside the control of the county or municipality before it would be considered infeasible.
In contrast, diminished support for a project among the elected officials, a shortfall in SPLOST revenues, or increased project costs would not likely be sufficient for a project to cross the threshold from feasible to infeasible. Likewise, a technical problem in constructing a facility would not make a project infeasible so long as there is a reasonable engineering solution to the problem.
Can excess proceeds be used to pay debt of a local authority?
No. Excess proceeds may not be used to reduce existing debt of an authority whether it is a development authority, water authority, housing authority or any other type of local authority.
In my opinion the following is cut and dry. An authority had NO authority to hand over SPLOST funds to anyone.
§ 48-8-121. Use of proceeds; maintenance of separate account; record keeping; audit; use for road, street and bridge purposes; issuance of general obligation debt; distribution of excess proceeds.
(g) (2) Unless otherwise provided in this part or in an intergovernmental agreement entered into pursuant to this part, excess proceeds subject to this subsection shall be used solely for the purpose of reducing any indebtedness of the county within the special district other than indebtedness incurred pursuant to this part. If there is no such other indebtedness or, if the excess proceeds exceed the amount of any such other indebtedness, then the excess proceeds shall next be paid into the general fund of the county within the special district, it being the intent that any funds so paid into the general fund of the county be used for the purpose of reducing ad valorem taxes.
Regarding Ag Authority SPLOST handed over to the city.
How can the City of Barnesville be holding the county’s SPLOST funds legally? Are they not in possession of stolen property belonging to the citizens of Lamar County?
Gary,
If only are elected officials knew how to read the Georgia Code!!!
Where is the State Attorney General When you need him?
The best way to teach our local government how to properly use SPLOST is to take it away from them for a year. Only the people can do that. And if government wants to increase taxes in an attempt to get even - VOTE THEM OUT OF OFFICE.
Either way you see it - the power still rest with the people that cast the votes.
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