After a months-long negotiation process, the City of East Ellijay accepted the latest offer by the county for the Local Option Sales Tax (L.O.S.T) distribution. Every ten years local municipalities are required to negotiate the distribution rate of revenue from the tax. Since Commission Chair J.C. Sanford initiated the process in September, negotiations have often been contentious, with murmurings of the matter being settled through arbitration.

At the March City Council Meeting, East Ellijay Mayor Mac West said the previous offer the city received prior to the one accepted was six percent for East Ellijay and 15 for Ellijay, a far fall from its current 10 percent.

West explained that under the Georgia Statute, if a city does not comprise 50 percent of the municipal population, that city is then considered an absentee municipality and does not have a vote. However, he recited a litany of sales tax collections from 1992 to 2010, arguing that the increases over the years were due to revenue from businesses in East Ellijay.

“Since 1992,”

he said,

“L.O.S.T collections in Gilmer County have increased six times, caused due to the efforts of our city government and annexing new territories, assisting developers financially, and encouraging growth in our commercial area.”

The city has also, however, experienced a decrease in population, depriving it of a L.O.S.T. vote. On this basis, West noted the inclusion of East Ellijay in the negotiations was a gesture of courtesy, adding East Ellijay did not have a choice, but to accept the offer.

In the end, the mayor felt the city had been treated unfairly in the process.

“All cities regardless of size,”

he said, reading his argument,

“should have a vote in the L.O.S.T negotiation process and should be allowed to have a voice in any mediation or arbitration. The eight criteria mandated under the statute were not considered by the county politicians. They were only concerned with services strategy and distribution per capita (population).”

East Ellijay accepted a rate of nine percent. For its part, the City of Ellijay is expected to take action at its city council meeting next week.