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Paulding County superintendent warns HB 581’s new local-option sales tax could cut school E‑SPLOST revenues
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Summary
Superintendent Steve Barnett told meeting attendees HB 581’s new local-option sales tax (LOST) could reduce the Paulding County School District’s E‑SPLOST collections, citing lower per-dollar receipts versus neighboring districts and potential cross-border shopping into Cobb County.
Superintendent Steve Barnett of the Paulding County School District warned that the local-option sales tax proposal referenced in HB 581 could reduce the district’s education sales-tax revenues and “jeopardize the district’s ability to continue” financing capital projects.
Barnett, who opened his remarks by identifying himself, told listeners that Georgia law prevents local boards of education from participating in the new property tax relief LOST referenced in HB 581. He said that, even without participation, the measure could still hurt the district by encouraging residents to shop in neighboring counties with lower overall sales tax rates.
Barnett provided specific figures to illustrate the district’s revenue shortfall. “We only collect 55¢ for every dollar collected by our comparable neighboring school districts,” he said, adding that “after factoring in debt service, we can only utilize around 41¢ for every dollar collected by these districts.” He framed those figures as an existing structural gap that the proposed LOST could widen.
Barnett also pointed to local geography as a risk factor, saying Paulding County’s largest population center sits on the border with Cobb County, where it is often more convenient for residents to shop outside the county. He warned that a proliferation of local-option sales taxes could produce voter fatigue and make it harder to pass future E‑SPLOST referendums the district relies on for capital funding.
The superintendent explained that, unlike many districts that rely on bond millage, the Paulding County School District uses E‑SPLOST proceeds to pay legacy debt service. He said a sustained decline in those collections could force the district to change funding practices and might limit its ability to fund school construction and expansion amid rapid district growth.
Barnett’s remarks in the transcript did not include proposed compensating measures, a formal motion, or a vote; he presented the information as concerns for district planning and for voters to consider. The record does not show additional speakers or responses to these points during the provided segment.
