Walker County voters to decide whether to add sales tax for transporation

Depending on the results of an upcoming special election, the cost of every purchase made in Walker County could increase by 1 percent in April 2018.

Walker County Commissioner Shannon Whitfield has proposed having a referendum concerning a sales tax — with all proceed dedicated to road works — as a special election’s sole item.

“This would have a major impact on getting

some of our highly trafficked roads repaved,” the commissioner said. “Without passage, we can expect a life filled with potholes.”

Whitfield said he opposed a similar statewide referendum that was rejected at the polls in the summer of 2012, but says several things now lead him to support adoption of a TSPLOST.

That earlier version of a transportation special purpose local option sales tax was adopted by only three of the state’s 11 transportation regions: Region 7/ Central Savannah River (August), Region 8/ River Valley (Columbus) and Region 9/Heart of Georgia (Dublin).

“I was against it because it was a regional TSPLOST,” the commissioner said. “There was a strong opinion that we would be a donor and not see tax dollars improve the roads in Walker County.”

November’s referendum, if approved, would be dedicated strictly to the local county with pro rata shares for the cities. Allocations would be the same as the current SPLOST with 75 percent going to the county, 11.67 percent to LaFayette, 6.3 percent to Rossville, 3.75 percent to Chickamauga, 2.87 percent to Lookout Mountain and 0.39 percent to that portion of Fort Oglethorpe that is within Walker County’s borders.

Whitfield said it is anticipated that this would bring in about $3 million annually, of which about $2.25 million would go into the cash-strapped county’s coffers.

“This would be a five-year TSPLOST, by law it cannot exceed five years,” he said, adding, “and it can only be used for transportation.”

TSPLOST funds can be used to pay for new construction as well as for maintenance of existing roads, bridges and other transportation-related capital projects.

Regions that rejected the TSPLOST have found paying for such projects more costly in recent years. That is because a county, or city, that opposed TSPLOST must pay 30 percent of the cost when applying for state LMIG (local maintenance improvement grants) funds. Regions that adopted the statewide referendum must pay only 10 percent — the state pays 90 percent — for paving projects.

Having to pay three-times as much in matching funds has been even more of a burden for Walker County. Because the current debt load is so high and there is a negative cash flow, the county has not been able to pay its share of projects.

“I have about $ 1 million of LMIG money in the bank account, but can’t use it because we are shy of the 30 percent match,” Whitfield said. “And we will have slightly more than $1 million (more) coming in for this year.

“I don’t have the funds available to match the state money, but TSPLOST could be used as matching funds to reach that 30 percent.

“The cost to resurface is about $100,000 per mile, so with this we would pave and stripe roughly 26 miles of county roads.”

Whitfield said feedback so far has favored the idea of a sales tax, as it is a user tax and not one that would affect property taxes, taxes which are already set to go up in the coming year.

The commissioner is adamant that TSPLOST funds would not be used to finance bonds —”there is no bonding component” — but will be used as collected. That is why having unspent LMIG money is a bonus.

“What will help us here is that for every $3 we raise, the state will give us $7,” he said. “We will have the stateshared funds that will allow us to do this on a cash flow basis.”

If passed in November, the commissioner said TSPLOST collections would begin in April 2018. The state would return those funds to the county “as soon as July” and after that it is expected that about $187,000 will be collected each month.

Those opposed to any increase in local sales taxes always claim that higher rates drive business to surrounding counties or across state lines.

Whitfield said he has heard that complaint but doubts it will have a great impact.

“People already pay more than 9 percent in Chattanooga,” he said. “Dade County is putting it on the ballot, and all counties in Georgia are looking toward adding this to the tax base. This is something that is needed.”