What are the benefits of a sales tax versus other options, such as a bond referendum, for example?
A. For years the school system had to rely on bond referendums to fund needed schools because there was no other alternative. There are a number of limitations to bond referendums. They typically result in a property tax increase to pay them off. The debt from bonds is long-term, as much as 20 years, so the interest payment adds substantially to the long-term debt. In addition, the amount of money that a bond referendum would generate is much less than what the sales tax produces. For example, the largest bond referendum the school system has ever passed raised $215 million. The 1997 education sales tax is bringing in $545 million to GCPS and another $15 million to Buford City Schools. The schools built with the sales tax are paid for as soon as they open. Schools funded with bonds take many years to pay off, and are much costlier. This is not a new tax. In addition, everyone who lives, works, visits, or shops in Gwinnett County will help pay for school construction.
