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SUMMARY: LC 33 6901
This is a constitutional amendment to allow boards of education to call a referendum for a 1% sales tax to be collected for up to five years for maintenance and operations expenses. This tax would be in addition to the 1% sales tax for capital outlay that is already in place.
It requires no millage rollback. If excess funds are raised, they must be used to reduce indebtedness. If there is no debt, then the millage must be reduced.
REQUIREMENTS:
Boards of education would follow the same process for this tax as they do for the E-SPLOST.
POINTS TO CONSIDER:
Ten school districts have a permanent sales tax for maintenance and operations in place under local constitutional amendments (which are no longer allowed). Those districts must adjust their millage to reflect the revenue and have some of the lowest millage rates in the state.
Currently school districts are limited to raising funds for maintenance and operations from property taxes. This change would give districts a more diverse revenue stream and could relieve some of the pressure on property taxes.
Some fear that the state would reduce its funding if school districts had this option but GSBA's members have long had a legislative position supporting alternative revenue sources:
2.A.2 Alternative Revenue Sources GSBA supports an amendment to the Georgia Constitution to authorize the General Assembly to enact legislation that would allow local school systems to receive revenues from tax sources other than local property taxes, including but not limited to, a 1% local option sales tax (LOST) for general operations. Funds from this source should not supplant appropriations by the General Assembly for general operations.
EFFECTIVE DATE:
If passed by 2/3 vote in each chamber, it would be on the November 2018 ballot. The ballot question would be:
Shall the Constitution of Georgia be amended so as to authorize local boards of education to impose, levy, and collect a 1 percent sales and use tax for maintenance and operation expenses of the local school system?
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