A local option sales tax (LOST) is an addition to an existing sales tax made by a local government or municipality for a specific purpose. Local option sales taxes, usually ranging from 0.5 to 1.5 percent, are enacted to pay for special projects, typically things like roads, bridges, and schools. Generally sales taxes are imposed by state governments and used for financing state-level activities. In the 1990s, states began allowing cities and counties to add on local taxes. Sales taxes are collected by retail businesses and then forwarded to state treasuries. Added amounts from local option sales taxes are then remitted by the state treasurer to the local governments. In states that do not have sales taxes, local governments would not be likely to impose a local sales tax because of the cost of creating and managing a collection system. Most local option sales taxes are created through referenda. City or county political leaders propose a referendum stating the amount, the use, and how long the tax will be imposed. Around the country, most LOST referenda have been successful. While American taxpayers are generally resistant to increased taxes, LOST referenda succeed when they demonstrate a specific local benefit. A Georgia county promoted a LOST referendum to pay for school construction. Supporters argued local option sales taxes would allow taxpayers to “pay as you go,” only paying a small amount each time they purchased goods locally. Another slogan used by LOST advocates is “a penny for education,” suggesting that a 1-percent increase in the sales tax is a small price to pay. Opponents of local option sales taxes point out that sales taxes are regressive, meaning lower-INCOME people pay a higher percentage of their income in sales taxes than higherincome consumers. Many local governments impose very high accommodations and hospitality and tourism taxes. In fact, these are two of the few types of tax citizens usually like to see increased. Similar to a LOST, accommodations, hospitality, and tourism taxes are imposed as a percentage of the price of the hotel or restaurant meal and are used for local initiatives, often things like tourism promotion or development.