Voters in multiple Georgia counties decide on transportation tax

Voters in five counties around the state of Georgia decided Tuesday, Nov. 7 whether to adopt or extend a transportation tax to cover improvements to local infrastructure.

The transportation sales tax referendum on ballots in Baldwin, Barrow, Dougherty, Effingham and Walker counties authorizes or continues a 1% tax solely for transportation purposes. The Transportation Special Purpose Local Option Sales Tax can be used for purposes that include roads, bridges, public transit and seaports.

Georgia law mandates at least 30% of sales tax revenue must be used for projects consistent with the state’s strategic transportation plan.

Transportation tax background

There are multiple types of transportation sales taxes in the state of Georgia. The first is a regional tax. The second is a single-county tax. Two other transportation sales tax collections are imposed in the Atlanta and Fulton areas.

The Atlanta- and Fulton-area taxes and the single-county tax fully apply to motor vehicle transactions. The regional tax collections apply only to the first $5,000 of a motor vehicle transaction.

According to the Georgia Department of Revenue, leading up to election day, 105 of the state’s 159 counties had in place a transportation sales tax.

Transportation Special Purpose Local Option Sales Taxes do not apply to fuel purchases.

Baldwin County

Voters in Baldwin County approved a question to raise the 7% local sales tax by 1% to 8%. This transportation tax increase is estimated to raise $45 million over five years.

Transportation tax revenue in the county located northeast of Macon will be divided between the county and the city of Milledgeville. The county will collect 65% of net proceeds, and the city of Milledgeville will receive 35%.

Uses of the revenue will be limited to transportation purposes, such as roads, bridges and other infrastructure improvements.

Collection of the tax will begin in spring 2024 and end by 2029. At that time, voters could decide to renew the tax for an additional five years.

The most recent transportation local option sales tax countywide vote was in 2018. At that time, voters rejected the additional tax by a 53% to 47% margin.

Barrow County

A transportation tax question passed by Barrow County voters will add the penny tax.

As a result, the locale northeast of Atlanta will raise the 7% local tax to 8% for streets and highways. The tax increase is estimated to raise $130 million over five years.

County projects will receive 72% of tax revenue over that time, or $94.2 million. The county’s six cities will divvy the rest, with the city of Winder receiving the largest amount – $18.6 million.

Winder Mayor David Maynard said before Election Day the local tax would be a significant step toward improving transportation infrastructure.

“The introduction of a transportation sales tax isn’t merely a financial decision; it’s a commitment to the future and improving our roads,” Maynard said in previous remarks.

Dougherty County

Voters in Dougherty County approved a question to continue to benefit transportation projects.

The southwest Georgia county’s ballot asked voters whether to renew the local penny sales tax and maintain the 8% tax rate for road work.

In place since July 2019, the transportation tax is estimated to raise $80 million through next summer. The city of Albany receives 67% of tax revenue annually, or 53.6 million, and the county collects 33%, or $26.4 million.

Funds are applied largely for road improvement projects. Money also is used for intersection improvements, paving and resurfacing, road striping, traffic calming and other road projects.

Effingham County

A transportation tax question approved in Effingham County authorizes the continuation of a 1-cent sales tax in the county and in the cities of Guyton, Rincon and Springfield.

The tax is estimated to raise $120 million over five years. The county will keep half, or an estimated $60 million, over that time.

Revenue raised would benefit projects that include resurfacing, intersection improvements, maintenance and safety.

Supporters said the revenue stream is important to help address population growth that is projected to continue in the locale north of Savannah.

Walker County

Voters in Walker County overwhelmingly approved a question to support transportation work.

Ballots in the northeast Georgia county that borders the states of Alabama and Tennessee included a question to impose the 1% transportation tax.

The county previously collected the tax from 2018-2022. Voters rejected the continuation of the tax prior to last year’s sunset date.

Passage of the question to boost the local sales tax rate from 7% to 8% will raise an estimated $45 million over five years. Revenue will be used to repair and resurface roads, bridges and sidewalks.

Walker County will receive 75%, or $6.75 million, annually. The county’s five cities will receive the other 25%, or $2.25 million, annually. LL

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