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What commissioners heard about FLOST: a possible sales-tax option tied to HB 581
Summary
Staff explained the local sales-tax option (FLOST) in HB 581 is not automatic: counties that remain "opted in" could pursue a FLOST only with intergovernmental agreements and a local referendum, and the first five-year cycle requires separate legislative authorization to extend.
At the Stephens County meeting staff clarified that House Bill 581 contains a separate mechanism allowing counties to pursue a local sales-tax (often called FLOST) to offset property-tax relief, but moving forward would require additional steps.
"It should be understood that opting in by default gives you the option to implement a FLOST," Mr. Hamilton said. He told commissioners FLOST would require intergovernmental agreements with municipalities and voter approval in a referendum; the sales tax is available by right only for the first five-year cycle and would require new local or state legislative approval afterward.
Commissioners noted that opting out of HB 581 would remove their ability to seek a FLOST as a local revenue offset, while remaining opted in would preserve the option but not guarantee the county could successfully implement a sales tax without local agreements and voter support.
