Sept. 28: Local Option Sales Tax (LOST) Town Hall
The Local Option Sales Tax (LOST) is a special 1 percent sales tax on the purchase, sale, rental, storage, use or consumption of tangible personal property and related services.
LOST revenues are shared by counties and city governments based on population. Cities in Fulton County, including the City of Atlanta, currently receive 95% of LOST revenues, with the remaining 5% going to Fulton County.
LOST is an important source of general fund revenue for municipal governments. In Atlanta, these funds are used for core city services like police, fire, EMS, road construction, recreational programs and community events, and also enable the City to reduce property taxes. About 18% of the City of Atlanta’s general fund revenues come from LOST.
Negotiations are currently underway between Fulton County and its cities regarding the distribution of LOST funds for the next decade. Fulton County has proposed increasing its percentage, which would reduce the amount of funding received by the City of Atlanta and other municipal governments. In response, the City would either have to significantly cut services provided to residents or raise revenue in a different manner, likely through property tax increases.
An agreement must be reached by December 30, 2022, or the current LOST program will expire.
A Town Hall on LOST will take place on Wednesday, September 28, 2022 at 7:00 p.m. at the Georgia International Convention Center (2000 Convention Center Concourse, College Park, GA 30337). Mayors and representatives from South Fulton cities will participate in a panel discussion on the importance of the LOST program and the potential impact of program changes.