Special-purpose local-option sales tax

In the U.S. state of Georgia, a special-purpose local-option sales tax (SPLOST) can be levied by any county, for the purpose of funding the building and maintenance of parks, schools, roads, and other public facilities. Georgia's state sales tax is currently 4% (groceries and prescription drugs exempted), with the counties allowed to add up to 2% more for SPLOST.

A SPLOST is passed by a county commission, usually with the agreement of its city councils, and voted up or down by residents in a referendum, usually during the next scheduled election. A SPLOST only lasts five years, and always begins and ends with a full calendar quarter. At that time, if the funds are still needed, it must be voted upon again. All expenditures of SPLOST funds must be in compliance with Article VIII, Section VI, Paragraph IV of the Georgia Constitution, and Official Code of Georgia Annotated (O.C.G.A.) Section 48-8-141. Each SPLOST must define the projects on which the money is to be used, hence the designation of a "special purpose" tax. If enough money is raised before the full term of the tax, it may be ended at the end of an earlier calendar quarter.

• One SPLOST (1%) may be used to increase the homestead exemption for property taxes (sometimes called a HOST, or homestead-option sales tax).
• A SPLOST is not required to exempt groceries (and almost none do), but still cannot be applied to prescriptions.
• Cities are normally not allowed to levy sales taxes, they instead share proportionately with their county, according to how much was collected within respective city limits and unincorporated areas. Cities can have a separate tax if the county does not participate. Early on, in the 1970s, Dalton had its own tax. The county (Whitfield) sued and won the right to take over the tax.
• Since 2004, Atlanta charges a city sales tax of 1% to separate and repair its old sewers and storm drains. This does not count against the 3% cap on SPLOST/LOST/HOST taxes, and was sometimes called a MOST (municipal-option sales tax).
• Like the sewer tax, the MARTA sales tax is separate and not considered a SPLOST.
• The state has been divided into twelve regions, which will each vote on a TSPLOST for transportation needs in 2012. This also does not count against the 3% cap on SPLOST/LOST/HOST taxes.

Counties and school systems are required to provide an independent accountants' report, examining the way the funds were allocated and attesting to the fact that the system receiving funds managed those funds appropriately. School taxes are not technically considered a SPLOST, but are essentially managed the same way, with referendum dates and lists of projects to be funded being approved by county (and if applicable, city) school boards instead of county commissions and city councils. SPLOST mainly contributes money to Gwinnett County Public Schools(GCPS), and Buford City Schools.Buford is part of GCPS, but for some reasons it has its own school district. All sales taxes in Georgia are in whole percents, there are no fractional or decimal percents. Since 1997, GCPS has benefitted from a special purpose local option sales tax, or SPLOST, for education. Since 1997, SPLOST has provided GCPS students with thousands of needed classrooms in 46 new schools and dozens of school additions, as well as technology improvements that are essential to world-class teaching and learning.

The current SPLOST for schools, SPLOST III, will expire June 30, 2012. Recently, the Gwinnett County Board of Education approved asking voters to keep the one-cent SPLOST for another five years. The extension of the current SPLOST will appear on the November 8, 2011, ballot. Key facts regarding this SPLOST: Anticipated revenue of $876 million (By law, Buford will get $17.1 million based on their student enrollment, leaving GCPS with $858.9 million.) Projects include 5 new schools, 1 bus facility, and 9 additions and renovations. Also included is air conditioning for all middle and high school gyms and all elementary activity buildings, along with all kitchens that currently do not have air conditioning. Significant technology upgrades including retrofits for all schools and infrastructure support and digital content to expand the walls of the classroom and make learning more engaging and relevant to today's world. Also, recently the vote(GA only)or SPLOST has passed, concluding that schools will continue to be benefited. Facility improvements to address preventive maintenance that has been postponed due to budget cuts (roofing, painting, carpeting, etc.)(cite from http://www.gwinnett.k12.ga.us/gcps-mainweb01.nsf/pages/SPLOSTIV_ThePlan)