New Transportation Funding Option: HB 1382
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Unfortunately, HR 168 seems unlikely to move out of committee this legislative session. However, BikeAthens is now calling for support of a new bill, HB 1382, which was recently introduced by Rep. Bob Holmes and others. The purpose of the bill is to amend the tax code of Georgia, thereby authorizing the imposition of a local option sales tax specifically to fund local and/or regional transportation projects.

HB1382 goes a long way toward achieving what we’ve wanted in Athens for years: the ability to impose a sales tax specifically earmarked for transit.

The bill can be viewed at the following web site: http://www.legis.state.ga.us/legis/2005_06/sum/hb1382.htm. Quick summary:

• HB 1382 allows the governing authority of any county to impose a “county transportation local option sales tax” (CTLOST), subject to approval by referendum. This means the citizens of the county must approve it by 50% majority in a local election (similar to SPLOST).

• The CTLOST shall be at the rate of 1%, and can be imposed for a maximum of 20 years (after which it may be renewed with a new referendum). HB1382 specifically excludes the 1% CTLOST from the state-mandated 2% cap currently limiting the amount of local taxes that can be imposed.

• From the CTLOST proceeds, 1% goes to the general fund of the state treasury “in order to defray the costs of administration.” The remainder goes to the county, and can only be used for the purposes specified in the resolution calling for the tax. These proceeds must be kept in an account separate from other county funds.

• CTLOST is intended to be very flexible to meet the varying needs of individual counties. Funds can be used for almost any type of transportation project, including (but not limited to) sidewalks, bicycle paths, buses, and trains. Funds can be used for:
  • local transportation projects;
  • regional transportation projects;
  • matching funds for contributing to local or regional projects; or
  • any combination of the foregoing

There are several positive aspects to this bill.

• The 1% tax amount would be more than sufficient to completely fund Athens Transit’s current operations AND expanded services.

• CTLOST could be used not only for local projects, but for regional projects as well. This means that we could start thinking about expanding Athens Transit into outlying areas, if desired.

• The tax structure is one that people are already familiar with; it is imposed like SPLOST. Ultimately, local voters would decide whether to accept or reject imposition of this tax.

• It doesn’t require a 2/3 majority in both the General Assembly and the general public, unlike the constitutional amendment proposed by HR168. Thus, passage is more likely. More importantly, it doesn’t require the creation of an independent authority with powers of taxation and eminent domain, which were controversial and seemingly the main reason for HR168 being stalled in committee.

We do have one important reservation regarding this bill. The language is not as specific as we would like to see regarding what types of projects can be funded. Although seemingly alt-trans friendly, specifically mentioning sidewalks, bicycle paths, buses, and trains, there is nothing in the language prohibiting the use of CTLOST funds for auto-centric projects such as road widenings. Nonetheless, for counties with a progressive transportation plan, this bill would finally provide the funds necessary to put such a plan into action. Therefore, the board of BikeAthens supports HB 1382.

WE NEED YOUR HELP TO ENSURE PASSAGE OF HB 1382!

HB 1382 is currently in the House Ways & Means Committee. The current legislative session is almost over. If we want to see CTLOST go into effect this year, it is critical that this bill be moved out of committee to the House floor for a vote within the next few days. Please contact the representatives on the Committee, urging them to support this bill and move it along.

The Chairman of the House Ways & Means Committee is Larry O’Neal. He can be reached by phone at 404-656-5103 or by email at larry.oneal@house.ga.gov. Contact information for the other committee members can be found at http://www.legis.state.ga.us/legis/2005_06/house/Committees/waysMeans/gahwm.htm.