TSPLOST negotiations highlight cities’ split

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ELLIJAY, Ga. – Paving roads and the amount of spending came into debate as the Gilmer County Board of Commissioners met with Mayors and members of City Hall from both Ellijay and East Ellijay today to discuss TSPLOST negotiations.

The discussion centered on the split that each entity wanted to see with the upcoming possible TSPLOST tax. Each entity vied for an increase to their portion over and above what they got for the previous SPLOST split. Debate arose around the idea of the cities increasing to a flat 2 percent for East Ellijay and 6 percent for Ellijay. This would be up from the 1.93 percent that East Ellijay has with the SPLOST split and up from 5.72 percent that Ellijay has.

However, as the discussion progressed, Gilmer County Commission Chairman Charlie Paris said he also wanted the county’s percentage to go up considering the 500 miles of road in the unincorporated parts of the county, roads maintained by the county.

The two mayors countered with arguments of their own. Mayor of Ellijay, Al Hoyle noted that many of the roads they maintain in the city are used more than those in the outer parts as people travel out of town on city-maintained roads to reach the county roads.

East Ellijay Mayor Mack West added to the notion saying that East Ellijay has a constant need for Eller Road as an example. Due to the high traffic and usage, the road is already showing cracks after only three years since paving.

However, the topic ultimately came to rest at proceeding with the same split that each entity sees on the normal SPLOST, Gilmer County receives 92 percent, Ellijay receives 5.72 percent, and East Ellijay receives 1.93 percent.

However, the negotiations of percentage were not the only discussion held in the meeting as citizens debated the TSPLOST in the Citizens Wishing to Speak section.

Bill Craig, of North Georgia Diamond, voiced his opinion that the retail business community may have been left out of the discussion on the topic. Saying that the county hasn’t considered the impact to businesses that more sales tax might have. He offered scenarios to consider that people visiting might go elsewhere or stop early to buy groceries or similar necessities if they visit Ellijay, or that someone might visit another county to buy larger items like his store provides, being jewelry and diamonds.

While Paris did say he met with one retailer privately to discuss the topic, Craig repeated that he felt the county had not done enough to understand the business impact.

Mayor West commented on possible impact saying if he was going to buy something like a diamond, he would shop with North Georgia Diamond over driving to Atlanta for only a $100 difference, coming from the 1 percent sales tax increase.

Craig went on to say that adding TSPLOST would make Gilmer one of the highest sales tax percentages in the state.

Georgia Sales and Use Tax Rate Chart - Gilmer TSPLOST Negotiations

Georgia Sales and Use Tax Rate Chart

In fact, according to the Georgia Sales and Use Tax Rate Chart (pictured to the right) published, for January 2020, by the Georgia Department of Revenue, of the 159 counties in Georgia, just over half of them have an 8 percent sales tax.

Actually, 83 counties have an 8 percent sales tax, while 69 counties (including Gilmer) have a 7 percent sales tax, 4 counties have a 6 percent sales tax, and only one county, Ware County, has a 9 percent sales tax. This does exclude Fulton and DeKalb counties with split sales tax in parts of the county according to this document.

Also, there are 87 counties that currently have some form of a TSPLOST, whether it is the original state TSPLOST or a locally added TSPLOST after that statewide vote.

Looking more specifically to the Highway 515 corridor, as some have called it, Fannin, Gilmer, Pickens, and Union Counties all, currently, have a sales tax rate of 7 including LOST (Local Option Sales Tax), SPLOST (Special Purpose Local Option Sales Tax), and ESPLOST (Educational Special Purpose Local Option Sales Tax).

One more comment of major note came from Chairman Paris who said, “I’m fine with it either way,” when discussing if the TSPLOST will pass on the ballots. Paris admitted a large amount of pressure on him from the public. He has stated in previous meetings that he feels the road department and the county’s roads are progressing. He ultimately simplified the discussion and the TSPLOST vote as he summed it up by saying its a decision on if we want our roads fixed over the next 25 years or the next 5 years. The TSPLOST, as he described, is simply a way to achieve the same results faster.

 

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2 Comments

  1. […] an estimated collection of up to $25 million from a one percent TSPLOST tax. As reported from the joint meeting between the cities and the county, the resolution also states the split of the proceeds between the three entities, “92.35% to […]

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