Augusta SPLOST Loss Could Cost

Augusta, GA—For Ben Kay, the next sales tax package is okay. He was voting early at the Richmond County Board of Elections office. “I voted yes I don’t necessarily like to raise taxes but I think it’s important for elected officials to raise funds and lead us,” he said.

But, there is a concern that ‘yes’ for the SPLOST (Special Purpose Local Option Sales Tax), may be a lot harder to come by this time around.

“I have to say I’ve been very concerned, about some of the Commission action recently and wonder if I should support another SPLOST,” says Jerry Woods, a former Augusta City Council member.

The city is having trouble moving on the TEE Center, a 2005 sales tax project, but it’s a different story when it comes to Gilbert Manor.

The city took $10 million from its reserves and gave it to the Medical College of Georgia to buy the property, and tear down the buildings.

The city plans to replace the money using SPLOST dollars. But, not dollars from past years, money from the package being voted on, right now, the one some voters have problems with.

“You know the plan was to use SPLOST dollars to pay back that loan if it doesn’t pass this time or the next time we’ll have to make some decision on that,” said City Administrator Fred Russell.

That decision could be raising property taxes to make up the $10 million. So, what would that mean for city homeowners?

“If we do intend to replenish the reserves, to the tune of $10 million, it would cost each homeowner about $125 the first year on their property tax bills,” said Tax Commissioner Stephen Kendrick.

Its money already being spent, but those dollars are a long way from being in the bank.

But, Administrator Russell says if the sales tax fails, later this month, the city will be coming back with a leaner plan, but adds the Gilbert Manor money will be part of the package.