The bill would make several substantial changes to local sales taxes:

• The bill would increase the allowed limit on local sales taxes from 2 percent to 3 percent (allowing a rate of 7 percent in total) while eliminating a majority of exceptions to that limit. Sales taxes not included in the limit are ESPLOST, MOST, and one penny for transportation purposes, either the single county TSPLOST, the regional TSPLOST, or a MARTA tax.
• This bill would remove the prohibition against simultaneously levying a LOST and a HOST. The bill would also revise the provisions of HOST to require an agreement between the county and cities representing 50 percent of the municipal population before a HOST could be levied while guaranteeing a minimum benefit for all cities from the tax.
• Finally, the bill creates a new sales tax called the Flexible Penny Local Option Sales Tax (FLOST). This new sales tax would be available to counties and cities that have not reached the maximum allowable sales tax rate. To levy the tax the county and cities representing 50 percent of the municipal population would need to sign an intergovernmental agreement for the distribution of the funds and a local act by the general assembly would need to be passed before a referendum on the tax. The sales tax revenue from this new sales tax could then be used by each jurisdiction for property tax relief, similar to a LOST or OLOST.

SUBSTITUTE

HB 1115 is now part of a substitute for SB 349 which also includes HB 1031. Please see the legislative tracker for a description of HB 1031.