L.O.S.T Cities: Ellijay and County Play Tug-of-war with Taxes

“Come up with anything that you can think that the county provides that the city doesn’t; at the same time, be fair to the cities with the things that they provide, that we don’t provide”

Every ten years, at census time, local governments battle over sales tax percentages, specifically the local option sales tax (L.O.S.T). On September 29th, the Ellijay City Council addressed the haggle of percentages at a called meeting. In the week preceding the meeting, the city received a hand-delivered letter from Commission Chair J.C. Sanford. Sanford’s letter enclosed a recommendation for the new percentages. Currently L.O.S.T is divided with Ellijay receiving 17 percent, East Ellijay, 10 percent and the county receiving the balance. Sanford’s recommendation sank Ellijay down to 6.753 percent and East Ellijay to a mere 3.14 percent. The rearrangement skyrockets the county’s percentage to 90.233 percent. At Ellijay’s September council meeting, after a brief discussion, the council made a motion to give Mayor Al Hoyle the authority to negotiate a reasonable percentage with the county and East Ellijay. However, the council sought an increase in its percentage of the tax. Member Kathryn Lancey said that she would like to see an increase from 17 percent to at least 20 percent.

The topic reared its ugly head again last Thursday, at the October 13th Board of Commissioners workshop.

“I would like you all (Beattie and Hall) to come up with anything that you can think that the county provides that the city doesn’t; at the same time, be fair to the cities with the things that they provide, that we don’t provide,”

Sanford said referring to Ellijay’s response to his letter. The county feels it requires more money from L.O.S.T. revenue because it provides more services. Conversely, at its meeting, the Ellijay City Council argued that more citizens pass through its jurisdiction, thus requiring the city to provide more services. The county’s argument is that its services cover the entire county, where the cities of East Ellijay and Ellijay only provide services, for a small concentrated area. Also, according to proponents for a higher percentage to the county, the city provides duplicate services, which the county already provides, like police, fire and emergency services.

Sanford said that he wants to schedule a meeting with Beattie and Hall to discuss the matter further. If Gilmer County and the cities of East Ellijay and Ellijay do not have a deal by December 31, 2012, the courts will decide the partition of money from L.O.S.T. revenue.