This bill makes significant changes to taxation of motor fuel and creates a new single county local option TSPLOST. Click here for a detailed summary and here for additional information including county impact analysis.

This legislation allows counties and cities that have entered into rapid transit contracts with Metropolitan Atlanta Rapid Transit Authority (MARTA) and already have a 1 percent sales tax to levy an additional 1/2 percent sales tax for use on MARTA projects. A county or city that does not want to enact the additional 1/2 percent sales tax must adopt a resolution or ordinance by June 30, 2016. For a more detailed summary of the legislation, click here.

This legislation (now a Senate Transportation Committee substitute,  LC 39 1328S) amends the local MARTA Act in numerous ways, including:

1) Atlanta and the three counties (DeKalb, Fulton, and Clayton) that have entered into rapid transit contracts with Metropolitan Atlanta Rapid Transit Authority (MARTA) and already have a 1% sales tax to levy an additional 1/2% sales tax for use on MARTA projects. The referendum will be held during the 2016 general election, unless the county or city adopts a resolution or ordinance stating that it will not levy the additional 1/2% sales tax or stating that the referendum will be held in 2017.  

2) By May 31, 2016 (and again in 2017, if the 2016 referendum fails), MARTA must submit a preliminary list of rapid transit projects within or serving the county or city that could be funded by the proceeds of the 1/2% additional sales tax. By July 31, 2016 (and again in 2017, if the 2016 referendum fails), MARTA must submit a final list of rapid transit projects to the city or county that must be incorporated into the rapid transit contract.  

3) Atlanta can hold a referendum in the city limits and a county referendum is countywide other than in Atlanta city limits. 

4) The additional MARTA tax must first be spent on the cost of the rapid transit projects included in the contract between the county or city and MARTA.

5) Once the additional MARTA tax is imposed, the effective rate of the multi county TSPLOST or the single county TSPLOST is reduced such that the combined rate of the new additional MARTA tax and any TSPLOSTs does not exceed 1%.

6) The additional MARTA tax is excluded form the 2% cap on local sales and use taxes under 48-8-6. 

7) If the referendum fails in one of the counties of the city in 2016, the process may be repeated for the 2017 municipal general election.

8) Upon completion of projects and full payment of bonds, interest and obligations, a levying government can by resolution or ordinance abolish the tax or provide for a phase out with excess proceeds going to rapid transit M & O.  

The current House substitute to this bill, LC 34 4943S, is a MAJOR revision of the MARTA tax and TSPLOST. The bill no longer contains any provisions regarding fireworks, although the summary for that version appears at the end of this new summary. 

The new transportation funding version of this bill does many things, including:

1) The City of Atlanta ONLY is allowed to levy an ADDITIONAL MARTA tax up to .50%, that will run concurrently with the existing 1% MARTA tax, if approved in a referendum.

2) The current single county TSPLOST is now available ONLY to counties which are not "metropolitan county special districts". In other words, this TSPLOST is available to all counties EXCEPT Fulton. This TSPLOST continues to not count towards the 2% local sales tax cap.

3) 159 special districts are created and a new TSPLOST at the rate of up to .75% is allowed for each special district that constitutes a "metropolitan county special district" defined as a county in which the 1% MARTA tax is currently levied AND in which 80% or more of the geographic area is made up of qualified municipalities (meaning a qualified municipality for SPLOST purposes). So the reality is this TSPLOST is for Fulton County ONLY. This new TSPLOST will not count towards the 2% local sales tax cap.

4) 159 special districts are created and yet another new TSPLOST at the rate of up to .75% is allowed for each special district that constitutes a "metropolitan municipality special district" defined as a city in which the 1% MARTA tax is currently levied AND in which 15% or more of the geographic area is made up of a metropolitan county special district. The second condition is meaningless since the City of Atlanta is the ONLY city allowed to levy the MARTA tax under the MARTA local constitutional amendment. So the reality is this TSPLOST is for Atlanta ONLY. This new TSPLOST will not count towards the 2% local sales tax cap.

THE FOLLOWING NO LONGER PERTAINS TO THE BILL: 

Prior to the House substitute, this legislation did not allow local governments to determine the hours of fireworks usage, which ACCG continues to advocate.  However, the bill makes several significant and beneficial changes to Georgia's fireworks law, including limiting the usage of fireworks from between 10 a.m. to 10 p.m., extended to 11:59 p.m. on January 1, July 3, July 4 and December 31, and until 1 a.m. on New Year's Day.  Local governments may extend these hours at their discretion.  Areas prohibited from usage are extended, and local governments determine whether to permit usage on their public property. There are various changes to the licensing of fireworks vendors, and local governments are clearly authorized to enforce state fireworks laws.            

 This joint resolution of the General Assembly makes several provisions regarding transportation funding including:

1) the 4th penny of state sales and use tax will be dedicated to transportation;

2) bond money will include annually $300 million for transportation funding:

3) 25 percent of increased revenues will be dedicated to transportation;

4) DOT is required to rank and prioritize all pending projects according to safety, critical infrastructure repair, and traffic relief.

The ultimate effect of this resolution depends on how it is passed.  If it is simply read once and adopted in each chamber, it will merely express the desire of the General Assembly. If it is read three times and adopted with the formalities of a general bill, it will have the force and effect of law. In that event, items 1, 2, and 3 above will still be aspirational only as the General Assembly can only bind itself by constitutional amendment. Item 4 will have the effect of a general law however and be binding on DOT.