Estimated Distributional Impact of T-splost in the Atlanta Metropolitan Area

Overview This brief examines the incidence of the proposed 1 percent Transportation Special Purpose Local Option Sales Tax (T-SPLOST) on different income and age groups in the Atlanta Regional Commission (ARC) region. The T-SPLOST is to be voted on by Georgians on July 31, 2012. Of particular interest is the effect the 1 percent sales tax would have on low-income families and senior citizens. We find that the T-SPLOST might cost low-income families as much as 1.7 percent of pretax income. However, this additional burden could be mitigated by purchasing qualifying food products through various supplemental food programs such as the federal food stamps program, which would be exempt from the T-SPLOST. Senior citizens generally would face a smaller additional burden due to the TSPLOST, representing 0.6 percent of their average pretax income.