SPLOST is an acronym for Special Purpose Local Option Sales Tax. It is an optional one percent sales tax which the State of Georgia allows counties to collect to fund certain capital outlay projects as proposed by county government and participating qualified municipal governments. SPLOST is designed to allow voters to have a voice in capital outlay projects they would like to see within their county that would otherwise be paid for with general funds and property tax revenues. SPLOST proceeds may not be used for operating expenses or maintenance of a SPLOST project or any other county or municipal facility or service.
A SPLOST is imposed after the county calls a local referendum and the referendum is subsequently passed by the voters. The SPLOST is collected from the sale of items, subject to the State of Georgia sales and use tax, within the county and can only be used for the specific capital outlay projects, as approved in the referendum by the citizens.
In addition, the SPLOST is also imposed on the sale of food and beverages, which are not subject to the state sales tax and unlike property tax, SPLOST is based on consumption and paid by all county residents and visitors alike.