Here at the PV Research Labs, our dedicated team of research interns have been diligently researching a few facts and figures that point to the drama of the upcoming Cobb County SPLOST as something akin to the movie Charade.

You see, if you distill the concept of who all the parties are that are involved in this real-life political charade, and you combine these parties with the statements and claims made by the proponents of the SPLOST, you’ll be able to identify the similarity between the county SPLOST vote and the movie Charade.

Here are the characters to keep in mind for our little Cobb County drama:

The Cobb County voters are represented by Audrey Hepburn’s character as the innocent participants in a charade of falsehoods and incomplete information from the “bad guys” who are after Hepburn’s assets that total $250,000.

Cary Grant’s character represents all the good guys in Cobb County who are trying to ensure that Hepburn doesn’t get harmed or be deprived of her property.  These good guys are organizations and people such as the following:

Cobb County Taxpayers Association

Georgia Taxpayers Alliance

The Georgia Tea Party, Inc.

Cobb County resident Craig Kootsillas, who has written several articles revealing the truth behind the claims of the pro-SPLOST folks via his eye-opening articles on the Examiner.com and his own Website CobbHomeowner.org.

ThePolitical Vine.com

AND…all the pro-SPLOST entities are represented by the “bad guy” characters played by Walter Matthau, James Coburn, George Kennedy…and some other dudes who got offed by their fellow bad guys in the movie.

Now, yes, it is a little “dramatic” to state that the pro-SPLOST group Citizens for Cobb’s Future are “bad guys” because as PV stated in a prior Alert, it is our contention that the vast majority of members of this organization are mere pawns, sucked-in by the deceptive arguments about this SPLOST that we are going to address in this edition.

So, without further adieu…let’s present…

6% = 4% + 1% + 1%

4% of this goes directly to the state of Georgia.  Every single county and sales tax jurisdiction in Georgia has, as its base, a 4% sales tax that goes to the state.

1% of this 6% is the Cobb County Education SPLOST Tax.  That 1% is NOT on this March 15, 2011 vote.  Anyone who tells you that is wrong.  That 1% goes only to projects directly relating to the school system.  That SPLOST stays intact regardless of the outcome of this March 15th vote.

The last 1% of this county’s sales tax is the SPLOST matter we are addressing here.

SO, to the argument that this SPLOST is “just a penny,” it is not a matter of just being a “penny.”  It is a percentage point.  1.0% of every taxable transaction in this county.

BIG difference when it comes to the actual math involved. BIG difference when it comes to your own wallet.

Each of these studies will cost taxpayers (whether they are Cobb County taxpayers or state of Georgia taxpayers) $20 million dollars each, for a total of $40,000,000. In the Cobb SPLOST Booklet, these two studies appear on Page 24 of 64 and they are listed as follows:

Project: Transit
Description: Alternative Analysis/Implementation Plan
From: Cumberland Mall
To: Perimeter Mall
Estimated Project Cost: $20,000,000

Project: Transit
Description: Alternative Analysis/Implementation Plan
From: Town Center Mall
To: Atlanta
Estimated Project Cost: $20,000,000

These two projects, Ladies & Gentlemen, are what would constitute “pork” if money came from the State of Georgia for these two “studies”, and if they came from the Federal Government, they would be designated as “earmarks.”

Instead, someone extremely crafty in the getting-to-other-people’s-money game either inserted these two projects in this SPLOST themselves OR they paid someone to get it accomplished.

These studies are the way for some Cobb DOT-related contractors and engineers to be well-employed for 8 some-odd years while they burn-up billable time working on “studies” that do nothing to help Cobb County in the next 4 years…as the county commission has CLAIMED that this list of projects is needed for.

PV was a bit curious as to whether anyone at the federal level (i.e., elected folks) had any kind of keen interest in seeing this SPLOST pass due to these two projects.  PV inquired of Senator Isakson’s office, as well as talking with a representative of Representative Gingrey’s office if either of these members of Congress were promoting the passage of this SPLOST.

Senator Isakson’s office relayed to PV that Senator Isakson “has not engaged in the debate nor lent his name to the promotion of the Cobb SPLOST.”

Congressman Gingrey’s representative essentially stated the same thing that Gingrey has not publicly taken a position on this vote nor given his permission for anyone to use his name as a way to promote the passage.

PV has not had time to contact Congressman Price’s office or Senator Chambliss’s office to verify whether they are pro- or con- on this SPLOST.

The fact is, these two projects are not “needs.”  They are unnecessary “wants.”  And, while they are likely badly wanted by someone, no one should be allowed to use the vehicle of the public trough to line their pockets with money that COULD be better used by either a) the taxpayers themselves, or b) SOME necessary Cobb County project like that 911 service upgrade you folks claim we need so badly.

How does PV know this?  By reading tea leaves that few other people read.  AND…there are people in the county’s government that also KNOW the property taxes are going to go up whether this SPLOST passes or not.

Not sure if Tim Lee knows this himself, but there are several people involved in the pro-SPLOST group who know it for a fact because they know what has been happening to this county’s Tax Digest.

That is, the base of asset values has plummeted.  The number of people requesting reassessments of their homes has increased dramatically, and will continue to be requested all the way up to April 1.

Another strong indicator of our county’s financial strength is the number of active businesses currently registered with the Business License Department.  Here are some interesting facts regarding the number of actively licensed businesses in Cobb County Unincorporated:

2009 Business Count: 34,552
2010 Business Count: 20,074
2011 Business Count: 18,821

In 2 short years (2009 to 2011), the strength of the business community has plunged by nearly 50%.  That means the amount of economic activity has likely been cut by more than half.  When businesses close, employees are laid-off, business owners go broke, stop producing goods and services, stop investing, and a lot of those business owners are individual residents of Cobb County who are under water in their homes and, under water in their personal cash flow to meet obligations of all sorts.

AND, when business owners who are residents who are also homeowners have to file for bankruptcy and their homes are foreclosed on, the value of those assets dives.  And, when you accumulate all those foreclosures into a big pile, that will be reflected in the substantial decrease of value in the county Tax Digest.

This decrease in the Tax Digest valuations will NOT be able to be made-up via sales tax revenues.  The millage rates will have to be increased.

The reality of this SPLOST is a) everyone that still owns a piece of property in Cobb are going to have taxes raised, or fees added by the county commission…whether this SPLOST passes or not, and 2) IF this SPLOST passes, it will be a massive tax redistribution from the poor to middle-class in this county straight into the pockets of the already very well-off Cobb County business owners who will get the lion’s share of project money for these “wants” that the county, and the 6 cities, think they deserve to take from your pocket.

The County should do the responsible thing and admit this to you now.   Because, if the SPLOST fails, we will be saving 16.7% of our sales taxes in this county.  That is money the County can get when they squeeze us on raising the property and auto tag taxes.  You’re going to want that extra 16.7% savings you get to use to pay for the millage increases.

One of those 1% elections will be to renew or decline the renewal of the first 1% on our 6% sales tax rate: The School Board SPLOST.

The OTHER 1% SPLOST vote will be what’s called the “T-SPLOST.”  This is a vote that will include the 10-county region of the metro-Atlanta area.

A “T-SPLOST” stands for a “Transportation SPLOST.”  Everyone in the 10 county region will be asked to vote to add 1% to all of their county sales tax rates.  Cobb County is one of those counties in the 10-county mix.

PV is dubbing this 2012 T-SPLOST as the Regional Atlanta Transportation SPLOST…or, R.A.T.S. for short.

Now, here’s the kicker for anyone who is a supporter of the passage of RATS: If you want RATS to have the BEST chance of passing, you will hope that votes like this Cobb SPLOST vote on March 15th fails.

Because there ain’t no freaking way that if this March 15th SPLOST passes AND the county raises the millage rates anyway (as PV predicts with 99.9999% certainty they will have to do) that Cobb County’s voters are going to vote in favor of RATS.

AND…the voters in the surrounding counties will also see what happened in Cobb when the commission promised one thing, but had to raise millage rates anyway, and they will vote against RATS as well.

Look, PV knows that you folks on the Commission are great people, and you’re in a tough spot. There is nothing personal going on here in the delivery of our opinion to you and the rest of the political world.

But, you made it a much tougher spot to be in when you 1) allowed the addition of crappy pork-projects like those 2, $20-million “studies” that look more like gifts to the CIDs than projects that will help Cobb County residents in the next 4 years, and 2) when you’re not being completely realistic in your assessment of what’s really going on in the valuation of the county’s Tax Digest.

PV recommends that people vote against this SPLOST because we view the SPLOST as, literally, a big SLUSH Fund for the county to play Santa Claus with people’s money in awarding special projects to special people, all without ANY true, enforceable oversight on the quality of the projects that are built.

When there is no SLUSH fund, this county’s commission will be forced to return to exercising a more careful eye on being fiscally-conservative with the management of the county’s resources. That will be a good thing.  That kind of focus will require a discipline that encourages new solutions to problems.  You commissioners will be required to join the rest of us in figuring out how to think outside the box in order to survive.

Opponents of the 2011 Cobb County Special Purpose Local Option Sales Tax (SPLOST) will rally in Glover Park in Marietta Square Saturday March 5, 2011 from 4-6pm to demonstrate against the continuation of the one percent sales tax.

The one percent sales tax is estimated to cost taxpayers nearly $600 million over 4 years.

According to James Bell, director of Georgia Taxpayers Alliance, Inc. (GTA) and host of the event, the rally will help to educate voters of the March 15th vote and give opponents of the tax a forum to express their views why the tax should be discontinued.

A dozen Cobb business owners and local residents/voters have signed up to speak against the tax.

Live entertainment will be provided by the local Blue Grass Band “Out of the Blue”.

“Parks have historically been use by citizens as a public forum to express their opinions and generate attention to a cause”, Bell said. “Our goal is to generate public awareness of the tax vote and give the citizens a forum to express themselves through music and speech.”

“We are asking voters what could they do with $600 million in their pockets”, said Bell. “By voting NO, Cobb will reduce its sales tax by 16%, and it will be a boost to the local economy and local businesses.”

The “Ax the Tax” Rally will give the news media photo and interview opportunities.