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Is E-Splost Legal?Thu, 10/16/2008 - 1:05pm
By: Fayette Resident
In an article entitled "Overview of Special Purpose Local Option Sales Tax for Educational Purposes" published by Smith, Gambrell & Russell, LLP Attorneys at Law at http://www.sgrlaw.com/resources/briefings/bond_practice/446/ "Projects Authorized Education SPLOST can fund capital outlay projects for educational purposes. A “capital outlay project” is a major, permanent or long-lived improvement such as land, buildings and other structures and major items of equipment and vehicles, such as would be properly chargeable to a capital asset account as distinguished from current expenditures and ordinary maintenance, according to Official Opinion of the Attorney General of Georgia No. 97-7 (1997). As a result Education SPLOST may be used for building projects for educational purposes (whether by acquisition, construction or renovation), and also for school buses and equipment with an extended useful life and serving educational purposes. No express definition of “educational purposes” is provided, but building projects would not appear to be limited to school buildings. The retirement of previously incurred general obligation debt of the school system may also be described on the ballot as a purpose for the imposition of Education SPLOST, but only if that debt was incurred with respect to capital outlay projects for educational purposes. The debt must be general obligation debt, not lease-purchase obligations or COPs, and it must have been incurred “previously,” presumably prior to the resolution calling for the imposition of the Education SPLOST. " Does this mean that the wording used on the ballot to ask Fayette County residents whether or not they wish to have an Educational SPLOST is legal? The wording includes "(iv) acquiring textbooks" which I do not believe is "a major, permanent or long-lived improvement such as land, buildings and other structures and major items of equipment and vehicles, such as would be properly chargeable to a capital asset account as distinguished from current expenditures and ordinary maintenance, according to Official Opinion of the Attorney General of Georgia No. 97-7 (1997)" Would like your opinions. login to post comments | previous forum topic | next forum topic |