Augusta’s new half-cent sales tax goes into effect April 1, just in time for the Masters Tournament.
The 0.5% tax, approved by voters in November, will be used to fund construction of a new James Brown Arena.
The addition will bring the total sales tax in Richmond County to 8.5%. The rate will be highest in the state outside of Atlanta and Columbus. Most counties pay 7%-8%.
On an $800 smart watch, the Richmond County increase would bring the total price at the register from $864 to $868.
April when the golf tournament is played is consistently Augusta’s best month for sales tax collections. Collections have been on the rise generally due to inflation and other factors.
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Last May, monthly distributions of all 1% countywide sales taxes were between $5-$6 million.
The C-SPLOST or coliseum sales tax was created by the legislature as a way to help fund construction of a $250 million arena, after voters rejected an earlier initiative that would have raised property taxes.
The Augusta-Richmond County Coliseum Authority has issued bonds to borrow money ahead of C-SPLOST collections, projected to come in at around $25 million per year.
Sales taxes apply to all, regardless of income, although some groceries and medical supplies are exempt from state sales taxes.
The 8.5% Includes the .5% arena tax, as well as a 1% local option sales tax, 1% education sales tax, 1% special purpose, local option sales tax, 1% transportation sales tax and 4% in state sales taxes.
