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Significant Changes Made to Transportation Funding Legislation
Transportation funding discussions carried over into this week as HB 170 passed out of the full House Transportation Committee on Wednesday, February 18. The amended version of HB 170 that passed out of committee includes major changes. Some of the changes will have a negative financial impact on counties. A detailed summary of the local provisions can be obtained here. As a result, the ACCG Policy Council voted on Thursday, February 19, to no longer support the bill and to further negotiate the language while assessing its overall impact on counties. ACCG is currently working on several amendments that will address county concerns and hope they will be incorporated into HB 170 next week. The major changes in the amended version include:
SPLOST and ESPLOST will no longer be collected on diesel fuel. This change negatively affects all counties. One of the requested ACCG amendments is to place diesel fuel back in the Local Sales Tax Base. Please click here to review the data sheet with projected calculations.
Beginning on July 1, 2015, LOST/HOST will be raised to 1.25 percent and will no longer be collected on motor fuel. No action is required of local governments for the .25 percent increase to go into effect.
SPLOST and ESPLOST will continue to be collected on motor fuel. Upon local expiration dates and if voters decide to pass another referendum to renew the local sales tax, SPLOST and ESPLOST revenues collected on motor fuel will require local governments to spend SPLOST revenues derived from motor fuel on transportation.
Though the current language in HB 170 addresses the concerns some counties expressed for their schools as well as the requirement of having to pass a local ordinance, it places more counties in a negative financial situation. County officials are urged to contact their House members and ask them to support several amendments offered by ACCG. Please also remind your legislators of their commitment to ensuring that no local government entity is negatively affected by transportation legislation- no county, no school, or municipality.
ACCG reminds counties that they are diligently working with House members to ensure that HB 170 addresses all county concerns. While staying abreast of this significant legislation, please remember that your voice as a county elected official is both valuable and influential.
All information and any updates on HB 170 can be found here.
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