Friday, December 5, 2003

County rejects city’s call for SPLOST vote

At last week’s Board of Commissioners meeting, six Commissioners voted for the third time not to allow a referendum for a special purpose local option sales tax (SPLOST) to be used to fund water and sewer projects.

The resolution called for a countywide referendum to allow voters to decide whether to increase FultonCounty’s sales tax from 7 percent to 8 percent.  If such a referendum were to succeed,Fulton Countywould have the highest sales tax inGeorgia.

The majority of the Board voted against the resolution, citing the regressive nature of sales taxes and their disproportionate impact on low- and middle-income households, including senior citizens. In addition, several Board members expressed concern about the impact onFulton County businesses.

Based on research about the impact of sales tax increases in localities surrounded by jurisdictions with lower rates, the Fulton County Finance Department projected losses of $4 million annually for the Fulton County General Fund, and $5 million for the City ofAtlanta, if the county’s rate were to increase to 8 percent.  In addition, MARTA could face a loss of $11.8 million annually, while the school boards of Atlanta and Fulton Countyc ould also face a combined loss of $11.8 million annually.

Currently, of FultonCounty’s 7 percent sales tax, the state of Georgia receives 4 percent, MARTA receives one percent,FultonCounty and Atlanta schools receive one percent in their respective jurisdictions, and Fulton County and its ten cities share one percent.