Sales tax hike up for vote

Voters asked to decide DeKalb issue in Nov. 8 election.

DeKalb County voters will decide on both a sales tax increase and a property tax discount in November’s election.

The DeKalb Commission voted 5-1 on Tuesday to put the measures on the Nov. 7 ballot.

One would increase DeKalb’s sales tax from 7 percent to 8 percent. The other would give part of existing sales tax revenues to homeowners to reduce their property tax bills.

The special purpose local option sales tax (SPLOST) would bring in $100 million a year for infrastructure improvements — primarily, repairing hundreds of miles of the county’s most cracked and potholed roads.

In addition, voters will consider increasing the amount of sales tax that’s dedicated to property tax relief. Of the current 1 percent homestead option sales tax (HOST), 80 percent goes to property tax relief, with the rest distributed mostly to city governments. If approved by voters, all of the HOST will go toward providing a discount on property taxes.

The tax overhaul would be DeKalb’s most significant in 20 years, when voters first approved HOST and a sales tax to fund school infrastructure. That change moved the county’s sales tax rate from 5 percent to 7 percent.

This year’s tax proposals will be paired on the ballot so that if voters reject either, they both fail.

“I see this as an opportunity that will bode well for us in the future, where we can have smooth streets, roofs that don’t leak and parks that have proper maintenance,” said Commissioner Larry Johnson.

The sales tax increase would last for six years, raising an estimated $636.8 million. Proceeds would be distributed based on 2016 population estimates for each city and unincorporated DeKalb.

Much of unincorporated DeKalb’s share of the funds, $388 million, would go toward public transportation.

Each city approved its own project list for how to spend the combined $248.8 million incorporated portion of SPLOST proceeds.

Commissioner Kathie Gannon supported the SPLOST, but said it has flaws. DeKalb CEO Mike Thurmond said city and unincorporated residents should unify around improving the county’s facilities and services.