Cagle Pushing 1-Cent Local Option Sales Tax For Transportation; Counter-Proposal Dropped In House

Update at 1 p.m. adds statewide bill being introduced in House. New material highlighted.

(2/8/08) With the backing of Lt. Gov. Casey Cagle, a constitutional amendment was introduced in the Senate Thursday that would allow counties to seek voter approval for a 1-cent local option sales tax for transportation. Counties could work alone or in tandem with neighboring counties to undertake regional transportation projects.

Meanwhile, a counter-proposal was introduced in the House on Friday that would impose a statewide 1 percent sales tax increase dedicated to transportation funding. The bill was sponsored by Rep. Vance Smith, the House transportation chairman. Rep. Ben Harbin, the House Appropriations chairman, was a co-sponsor.

The so-called T-SPLOST (for Transportation Special Purpose Local Option Sales Tax) introduced in the Senate would work just as other local option sales taxes do. Voters would have to be told what projects would be included and how long the tax would last.

And, as with other local option taxes, it would apply to food and to gasoline sales.

If the proposal clears the Legislature and is ratified by Georgia voters in November, legislation spelling out the precise operational details would be introduced in the 2009 session.

The local option approach has long been favored by the Metro Atlanta Chamber of Commerce, and has consistently enjoyed Cagle’s support. Other business groups favor a 1 percent statewide tax increase, and House Speaker Glenn Richardson said several weeks ago he believes transportation solutions “should be statewide.”

Under the Senate resolution, counties would keep 80 percent of the money raised by the T-SPLOST. The remaining 20 percent would go to the state, which would use up to half its share for mass transit programs and the other half for traditional transportation needs around the state.

Cagle said he sees one big advantage for the local option approach: it can’t be spun as a tax hike in this election ear.

“I’ve been very adamant that I am not in favor of supporting a bill that would legislatively force a tax increase on Georgia citizens,” Cagle said. “This does not force any tax increase on any citizen in this state. It does give local communities an option, if they so choose - but more importantly, if the voters so choose ...”

Senate Transportation Chairman Jeff Mullis, R-Chickamauga, said, “I think it’s a great start in trying to solve our transportation problems.”

Sen. Doug Stoner, D-Smyrna, a co-sponsor, said, “If we do not move forward on this issue now, I’m afraid the voters will never forgive us on this point.”

A House-Senate transportation study committee which met throughout the interim last year included both of the transportation funding proposals in its report without favoring one over the other.