Politics & Government

As a deadline looms, here’s how Macon-Bibb would spend a new sales tax. Will it get support?

If Macon-Bibb County voters give the green light to a new sales tax, a group of commissioners have a plan on how to use some of its revenue.

However, before the other local option sales tax, or OLOST, can be placed on a ballot this fall, it still requires a bill making it through the state Legislature before the current session ends April 2.

The commission is seeking a better outcome this year after the last OLOST push ended with plenty of finger pointing.

This week, the County Commission approved a measure that says for up to the first 10 months of OLOST collections, the county would use 50 percent of revenue to replenish reserves. The remaining half would go to public safety and community development, including blight remediation, libraries and transit.

The commission’s resolution asks for support from the local legislative delegation. OLOST collections would start in April 2020 if it’s approved by voters in November.

“You could use that (revenue) as a one time stimulus and that would not be a part of the (property tax) rollback,” attorney Virgil Adams told commissioners this week.

The following year’s rollback would be the equivalent of the amount the OLOST generates. The county’s financial director said the penny-on-the-dollar tax is now bringing in $28 million-$30 million annually.

Some Macon leaders have said the OLOST would provide much-needed tax relief to property owners after Bibb’s millage rate was increased the previous two years.

A sales tax also draws in money from the many people who visit or work, but don’t live in Macon, and there would also be a property assessment “freeze” capping how much the taxed value of a home can increase each year.

Commissioner Al Tillman said the resolution is a way to ensure the public knows how any revenue would be spent before the 100 percent property tax rollback kicks in for 2021.

One hurdle facing the county: The commission’s latest request comes a little more than halfway through the 40-day Legislative session, leaving only a small window for passing the bill this year.

But at least one state official, albeit reluctantly, is on board.

State Rep. James Beverly, D-Macon, said he opposes the OLOST because of how it would disproportionally harm the poor.

According to a report from the Institute on Taxation and Economic Policy, lower-income people have a higher percentage of their income go toward sales tax.

However, Beverly said he could file an OLOST bill as early as next week.

He said he’ll leave it up to Macon voters to decide the fate of the sales tax now that commissioners have spelled out how revenue would be used to benefit the community.

Although the OLOST resolution was passed by commissioners this week, there are a couple of county leaders who say they have concerns about the latest request.

Commissioners Valerie Wynn and Mallory Jones said county leaders have to rebuild the trust lost from many residents over Macon-Bibb’s budget issues.

“I say that the only way we’re going to get (OLOST) passed is it all going toward property relief even in the interim or (maybe) No. 2 public safety and reserves, period,” Jones said. “Nothing else in there.”

This story was originally published February 27, 2019 at 5:15 PM.

SD
Stanley Dunlap
The Telegraph
Stanley Dunlap has covered government for The Telegraph since June 2015.
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