BALDWIN — The City of Baldwin heard a detailed presentation Tuesday night on a proposed floating local option sales tax (FLOST) plan proposed by Habersham County which is tied to statewide property tax reform efforts, along with a separate discussion on how the city would allocate potential Banks County SPLOST revenues if approved.
No formal action was taken on the Habersham County FLOST presentation, but council members later approved without objection a motion setting an 80/20 allocation split for Banks County funding discussions and authorizing staff to move forward with intergovernmental agreement work.
Habersham FLOST proposal presented as tax rollback tool
Habersham County Manager Tim Sims and consultant Phil Sutton outlined the FLOST concept, which is tied to House Bill 581 and allows participating governments to use a one-cent sales tax to reduce property tax millage rates.
Sims said the effort was developed collaboratively among local governments and is intended to provide property tax relief through sales tax collections rather than increasing reliance on millage rates.
Sutton said the proposal is designed specifically as a property tax reduction mechanism.
“The only use is to roll back property tax,” Sutton said.
Sutton said participating jurisdictions would enter intergovernmental agreements defining how revenue is shared in exchange for property tax relief, with potential millage rate reductions of roughly 3.6 mills in some cases.
He said more than 40 Georgia counties have already approved similar measures or are advancing them toward referendums.
Tight timeline ahead of referendum
Sutton outlined an aggressive timeline for approval and ballot placement:
- Intergovernmental agreements must be finalized in the coming weeks.
- County commissions must call for referendum action by late July.
- The measure would appear on the November ballot.
- Early voting would begin in October.
If approved by voters, the tax would take effect Jan. 1, 2027, with property tax rollback impacts beginning in the 2028 tax year.
Banks County SPLOST allocation split discussed
Council members also reviewed how the city would allocate potential Banks County SPLOST revenues, should voters approve the measure.
Public Works Director Scott Barnhart recommended an allocation of:
- 80% to water and wastewater infrastructure
- 20% to transportation-related needs
- 0% to parks
Barnhart said the city’s primary infrastructure concerns remain in its water and sewer systems, while parks in Banks County are currently in stable condition.
“As you’re all aware, the greatest concern is our water and wastewater infrastructure. I think that’s the best place in Banks County we could put that,” Barnhart said.
TSPLOST context shapes transportation discussion
Councilman Joe Elam noted that the existing Banks County TSPLOST program is already covering most paving needs in local municipalities, a point Barnhart agreed with.
Barnhart said the transportation sales tax program has allowed the city to focus on other priorities while still maintaining roads.
“The Banks County TSPLOST is one of the greatest things going right now for the city,” Barnhart said.
He said upcoming paving projects include Park Avenue and surrounding streets, with the city expected to cycle back through its paving list once those projects are completed.
Equipment and general fund impact
Councilman Mike Tope questioned why any transportation allocation was still needed under the proposed split, as TSPLOST is already paying for the necessary road work.
Barnhart said the 20% allocation would help fund street maintenance equipment and provide flexibility for operational needs, while also helping offset pressure on the city’s general fund.
“What it does do is offset our general fund budget going forward,” Barnhart said.
He said even a smaller allocation helps reduce reliance on general fund dollars for maintenance-related expenses.
Formal motion approved without objection
Mayor Doug Faust later called for a motion to adopt the 80/20 allocation split and authorize staff to move forward with intergovernmental agreement discussions with Banks County officials.
Faust said the county is advancing its own planning process and encouraged coordination in the coming days ahead of commission deadlines.
The motion passed without objection.
Faust said the measure would still require approval from the Banks County Commission but described similar FLOST-style proposals as widely supported and tied to property tax relief efforts.
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