This is why you should support a new sales tax, Macon leaders say
A new sales tax effort will be renewed again after failing to make it out of the state Legislature this year.
Macon-Bibb County leaders are expected to push again for the “other local option sales tax,” or OLOST, as a way to deal with a financial situation where budget shortfalls have left a once flush reserve fund running low.
But there is a selling point, leaders say.
That is: The OLOST would provide relief to property owners by reducing the county tax rate; a property assessment “freeze” would create a 2 percent cap on how much the taxed value of a home can increase each year; and people from other communities also pay the tax, former County Commissioner Gary Bechtel said.
“You get an opportunity for those who are traveling through and those who come into the county on a daily basis to work to contribute to the cost of services that the government has to provide,“ said Bechtel, who continues to advocate for the tax. “I think it’s an opportunity to give taxpayers relief and not have an additional full tax burden on them because a consumption tax is a choice. It’s not a mandate like property taxes.”
Bechtel left the commission to run for the state House District 141 seat but lost in the Republican primary to Dale Washburn. Washburn is unopposed in the general election.
Several county commissioners spoke this week about not only getting the local legislative delegation to support an OLOST bill but also getting the word out to residents who could vote for the tax referendum as early as next year.
The 1-percent sales tax could bring in roughly $30 million a year — the equivalent of 7.5 mills in property taxes, based on recent tax figures.
A key debate over the tax has revolved around the type of rollback property owners would receive.
State law says 100 percent of the OLOST has to be used to pay for a property tax rate rollback worth the same amount. However, in its previous effort, the Macon-Bibb commission pushed for a 50-50 split with half of revenue going toward cutting the millage rate and the rest going back to county government operations.
Garnering enough support from state lawmakers to change that law in 2019 could be an uphill battle.
Commissioner Al Tillman said it’s important to get each of member of the local delegation on board with the OLOST.
“Regardless whether it’s 50-50 or 100 percent, if all the delegation members walk out in agreement, I think we can sell it to the community,” Tillman said at Tuesday’s commission meeting.
State Sen. David Lucas, D-Macon, said the county needs to be able to use some of the OLOST revenue to shore up its budget problems that have occurred since consolidation. Lucas is running unopposed in the November election.
“The only option Bibb has is the extra penny,” he said.
Reinvestment
Macon-Bibb government could benefit even without a 50-50 split.
If supported by voters, the penny-on-the-dollar tax would start being collected in 2020. That would mean more than a year’s worth of extra revenue coming in before property taxes are rolled back in 2021.
Another component of the new tax could be what is called “reinvestment” if county leaders put that revenue toward public safety programs, cultural arts, recreation and facilitating small business growth.
That reinvestment piece is aimed at growing the tax digest to a point where Macon-Bibb is pulling in more money through increased values instead of higher millage rates, said David Thompson, a Macon resident who has worked with Bechtel and others on OLOST strategies.
“You have to grow property values,” he said. “More people visiting means more sales tax, but with more people coming to Bibb to purchase property, then values go up.”
Thompson added, “What other alternative is out there, much less, what has as many strong assets as this (OLOST) can bring long term if it’s properly implemented?”
This story was originally published September 27, 2018 at 3:55 PM.