Tag Archives: tax

Gov. Deal freezes state gas tax

Why is the governor freezing an 8/10 cent gas tax just before voters are expected to decide on a 1 cent transportation tax? Why do we need T-SPLOST when we could use that gas tax instead?

According to the Governor’s own press release:

Friday, June 8, 2012

Gov. Nathan Deal announced today that he will stop an increase in the motor fuel tax scheduled to go into effect on July 1. Using the formula established in state law, the Department of Revenue determined that average gas prices over the past six months call for the motor fuel tax to rise to 12.9 cents per gallon from 12.1 cents per gallon.

With that 0.8 cent gas tax, why would we need the 1 cent T-SPLOST sales tax? That 0.8 cent gas tax would have gone into effect just before the 31 July 2012 primary election, when voters till vote on the T-SPLOST referendum. T-SPLOST, which is a one cent sales tax. And a gasoline tax is paid by people who actually use the roads, not by every pedestrian who buys food.

The governor’s PR also said:

“We’re seeing a slow and steady rebound in Georgia’s economy, with our unemployment rate going down and state revenues heading up, but Georgians are still paying gas prices that are high by historical standards,” Deal said in a statement. “The state should not add to that burden at this juncture.”

But we should increase everyone’s food prices with a T-SPLOST tax? How does that make sense?

The governor’s PR also says:

The governor of Georgia has the power to suspend collection of a tax, but the action requires ratification from the General Assembly.

Oh, but this freeze only lasts until January, and the General Assembly doesn’t meet until then. How convenient!

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SPLOST with Lowndes County and the cities @ SPLOST 2012-06-11

The second of two meetings on the Lowndes County Commission According to the calendar for Monday morning, 11 June 2011, is about SPLOST, and also involves all the cities in the county.

SPLOST Meeting/ (6/11/2012)

The Lowndes County Board of Commissioners along with the City of Valdosta, City of Hahira, City of Dasher, City of Lake Park and City of Remerton will be holding a SPLOST meeting on Monday, June 11, 2012, at 9:30 a.m. in the Multi-Purpose Room on the 2nd floor of the Administration Building.

SPLOST is not to be confused with LOST (created by the legislature), nor with ESPLOST for educational purposes, and certainly not with T-SPLOST for transportation.

Unlike the work session, which has no description of what it's about, there is at least a link on the county Quick Links for SPLOST, which says:

Special Purpose Local Option Sales Tax (SPLOST)

As of July 1, 1985, Georgia law enabled local jurisdictions to use SPLOST proceeds for capital improvement projects that would otherwise be paid for with General Fund or property tax revenues. SPLOST stands for Special Purpose Local Option Sales Tax. This is a one-cent sales tax, which the State of Georgia allows counties to collect to fund specific improvement projects. SPLOST must be approved by voters in a general referendum in order to be enacted and last for a maximum of 60 months (five years) or until the total amount of revenue specified in the referendum is reached. The SPLOST projects and the amount of money raised by SPLOST were identified prior to voting on the SPLOST referendum. The proceeds of the tax must be spent for capital (non-operating) items by the county government and participating municipalities within the county.

That page also includes a list of SPLOST projects completed by January 2010.

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Videos @ SGRC 2011-09-19

Almost all the speakers from Lowndes County or Valdosta opposed T-SPLOST at the 19 September 2011 public hearing, as you can see in these videos.

Some of the videos have already been blogged separately, along with some closely related posts:

And finally, beware! Most of the discussion in these videos is about specific lists of non-discretionary projects. There’s also 25% of the T-SPLOST money that could be spent on discretionary projects, which are already being specified by the local governments, and which may include many of the same projects that were on the original unconstrained project list but got bumped off the constrained list.

Here’s a video playlist:

Videos
T-SPLOST Public Meeting, Southern Georgia Regional Commission (SGRC),
Corey Hull, Travis Harper,
Valdosta, Lowndes County, Georgia, 19 September 2011.
Video by Gretchen Quarterman for Lowndes Area Knowledge Exchange (LAKE).

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Aviation Projects, and Valdosta is a substantial donor –Larry Hanson @ T-SPLOST 2011-09-19 @ SGRC 2011-09-19

Larry Hanson, Valdosta City Manager, asked for the regional council to reconsider aviation projects, especially considering that the tax was supposed to be for projects of regional significance. Then he pointed out

Out of that $503 million about 40% of it or $212 million is projected to be generated here in Lowndes County. And when you look at what's being returned, for instance to the city of Valdosta, it's $47 million. It is certainly one thing to be a donor, but that's a pretty substantial donor.

He said he appreciated all the other counties, but much of the money would go to counties that are not contiguous to Lowndes County and are not part of the Valdosta Metropolitan Statistical Area (MSA), which includes the four counties of Lowndes, Brooks, Lanier, and Echols. He continued:

Lowndes County is about 26% of the region's population and we generate about 38% of the revenue, and we're not quite getting that back in terms of the distribution.

You may wonder why a City of Valdosta official was speaking for Lowndes County. County Manager Joe Pritchard was there at the start of the meeting, and I think County Engineer Mike Fletcher was, as well. County Chairman Ashley Paulk came in late and summoned Pritchard and Fletcher outside the glass doors of the meeting room. They stood there for quite some time, peering in, and then vanished.

Here's the video:

Aviation Projects, and Valdosta is a substantial donor –Larry Hanson @ T-SPLOST 2011-09-19
T-SPLOST Public Meeting, Southern Georgia Regional Commission (SGRC),
Corey Hull,
Valdosta, Lowndes County, Georgia, 19 September 2011.
Video by Gretchen Quarterman for Lowndes Area Knowledge Exchange (LAKE).

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Why did old US 41 N increase from $8 M to $12 M? —John S. Quarterman @ SGRC 2011-09-19

I asked why the Old US 41 North widening project changed from $8 million on the unconstrained list to $12 million on the constrained list, an increase of $4 million or 50% when the description did not change? The answer indicates GDOT and local governments want to drive development north in the county, leaving pedestrians and bicyclists stranded yet having to pay.

Corey Hull responded:

Halfway through we received new cost estimates….

GDOT did the cost estimates, in cooperation with the local government that was responsible for that.

A state employee told me after the meeting that GDOT raised some estimates because it thought the local government, in this case the Lowndes County Commission and staff, didn’t put in enough to cover the project. I don’t know whether GDOT was figuring by Atlanta costs or not…. At least the cost didn’t go up further in the final project list; I just checked and it’s still $12 million.

Corey elaborated that some projects increased and some decreased. I asked him which ones did which. He said he’d have to go back and compare. Later he helped me produce a list of comparisons of costs of Lowndes County projects, which shows that one went down by 30% and three went up by 50% or more. One, RC11-000099 St. Augustine at Norman Intersection Improvements, went up by 131.5%.

That $12 million for widening less than 3 miles of one road is more than one item that was in the unconstrained list but cut from the constrained list: $7.5 million for a bus system, with three bus lines that would connect Wiregrass Tech, Five Points, Downtown, Moody, East Side, South Side, West Side, and the Mall. A bus system recommended by the Industrial Authority’s Community Assessment to aid in employee attendance, industry recruitment, and workforce.

You could probably even start up a substantial commuter rail system using existing freight line tracks for less than $12 million. Even though GDOT apparently only believes in roads and bridges, busses and trains are actually more cost-effective, especially for lower-income people. The same lower-income people who will be disproportionately taxed by T-SPLOST as a percentage of their income.

Instead, the description for the Old US 41 North project admits the county is driving Continue reading →

Gasoline tax? —Roy Taylor @ SGRC 2011-09-19

Roy Taylor pointed out gas taxes are higher in Florida, and:

The people who use the gas pay the tax.

Then he told a story about a woman he knows who can't afford T-SPLOST.

Yes, he seemed to be proposing a gasoline tax to pay for transportation projects, an idea which I've been floating for some time. That's how Eisenhower paid for the Interstate Highway System: gasoline and diesel fuel taxes.

Here's the video:

Gasoline tax? —Roy Taylor
T-SPLOST Public Meeting, Southern Georgia Regional Commission (SGRC),
Corey Hull,
Valdosta, Lowndes County, Georgia, 19 September 2011.
Video by Gretchen Quarterman for Lowndes Area Knowledge Exchange (LAKE).

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St. Augustine and Gornto Road in Final T-SPLOST list @ SGRC 2011-09-19

Maybe you’d like to know what are the T-SPLOST projects and how much they cost, so you can decide whether you think the tax is worth it (in addition to all the other considerations). That can take some work. Here’s an example.

Since Gretchen Quarterman asked what $5 million for one intersection would buy, T-SPLOST plans have been filed and a constrained list and then a final list approved by GDOT. Price tags jumped wildly up and down in the constrained list. For example, widening less than 3 miles of Old US 41 North from North Valdosta road to Union Road jumped from $8 million in June 2011 to $12 million in August.

In the final list, this item seems to be the one Gretchen was talking about:

RC11-000100 St Augustine Road at Gornto Road Intersection Improvements

You can find that one line on www.t-splost.com, which seems to be the state’s propaganda site for pushing T-SPLOST.

To find the current dollar amounts, you have to rummage around elsewhere until you find Continue reading →

Five million dollars for one intersection? —Gretchen Quarterman @ SGRC 2011-09-19

Gretchen Quarterman wanted to know what the money was going for, with an example:

…at Gornto. That's a total of 5 million dollars! I'm having trouble imagining what you could do for $5 million in that one block. Do you have to buy the new McDonald's that they're building? I mean what are we doing there?

Corey Hull said he didn't know, since at that time many of the projects didn't actually have plans. See the next post for what eventually happened with that one.

Here's the video:

Five million dollars for one intersection? —Gretchen Quarterman
T-SPLOST Public Meeting, Southern Georgia Regional Commission (SGRC),
Corey Hull,
Valdosta, Lowndes County, Georgia, 19 September 2011.
Video by Gretchen Quarterman for Lowndes Area Knowledge Exchange (LAKE).

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Not a special Local tax: it’s a Regional tax —Nolen Cox @ SGRC 2011-09-19

T-SPLOST is a misnomer: it's not a Special Location Option Sales Tax, since it's voted on as a region.

I think maybe we should have a gasoline tax to pay for roads.

Here's the video:

Not a special Local tax: it's a Regional tax –Nolen Cox
T-SPLOST Public Meeting, Southern Georgia Regional Commission (SGRC),
Corey Hull,
Valdosta, Lowndes County, Georgia, 19 September 2011.
Video by Gretchen Quarterman for Lowndes Area Knowledge Exchange (LAKE).

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Lowndes, Tift, and Ware donor counties and majority @ SGRC 2011-09-19

Someone asked:

If Lowndes, Tift, and Ware vote against it, and the other fifteen counties vote for it, that’s a majority.

Corey Hull:

As long as they reach 50% + 1 in voters.

Questioner:

Those three counties, which would probably be the three donor counties in this region… they could kill it for our region if it was a large turnout.

Roy Taylor:

A large county like we could kill it for everybody.

The referendum is still on for July (during the primary, with less turnout) not November (during the general election).

The eighteen counties are: Continue reading →