Which statement about SPLOST is correct?

• A. It is permanent and funds general government
• B. It is temporary, must be approved in a referendum, and must finance specific projects such as streets/roads, bridges, landfills, and solid waste
• C. It is funded by income taxes
• D. It funds only education

Answer: (B)

SPLOST is a local option sales tax used for specific capital projects and is temporary. In Georgia, communities vote on it in a referendum, and the revenue must be dedicated to defined projects—commonly streets and roads, bridges, landfills, and solid waste facilities—rather than operating costs. Because the levy is time-limited and voter-approved, it ends after the chosen period unless voters approve a renewal. It is funded by a sales tax, not income tax, and it isn’t limited to education or general government funding. This combination—time-limited, voter-approved, and project-specific—explains why the statement described is the best fit.