This legislation changes provisions around the calling of a T-SPLOST (transportation special purpose local option sales tax) referendum. Modeled after LOST (Local Option Sales Tax) IGA and distributions provisions, HB 946 allows for a county, and municipalities representing more than 50% of the county municipal population to enter into an IGA to call a ballot question for a T-SPLOST. This is a departure from current law, which requires all qualified municipalities within a county to enter into the IGA to collect the TSPLOST at the full 1 percent.

Under HB 946, municipalities which are absent from the IGA, would still receive a minimum distribution of T-SPLOST proceeds based upon a formula accounting for the city’s percentage of municipal population and centerline miles. This ratio ensures that smaller cities receive a fair share of T-SPLOST proceeds, and are being considered in the city - county negotiation process during the development of a T-SPLOST IGA. Under HB 946, if an agreement is found between a county, and all qualified municipalities within, the T-SPLOST may be levied an additional year, totaling six.