Video: East Ellijay, Ellijay, and Gilmer County Reach L.O.S.T Verbal Agreement

Monday night, March 5th, the Gilmer County Board of Commission’s conference table had no empty seats around it as Ellijay, East Ellijay, and Gilmer County reached a verbal commitment on how they would split the Local Options Sales Tax (L.O.S.T).Monday night, March 5th, the Gilmer County Board of Commission’s conference table had no empty seats around it as Ellijay, East Ellijay, and Gilmer County reached a verbal commitment on how they would split the Local Options Sales Tax (L.O.S.T).

Gilmer County started the negotiation process for the L.O.S.T early last August by sending a letter to the city of Ellijay initiating the negotiation process in order to avoid having to go into arbitration at the end of this year which would cost the county a severe amount of money. In doing so, Gilmer County is ahead of other counties in the area in making an L.O.S.T decision who also have to split the sales tax with their counties municipalities.

Currently, Ellijay receives 17 percent of the L.O.S.T and East Ellijay receives 10 percent, leaving the County with 73 percent.The last offers made to Ellijay and East Ellijay in December by the County had Ellijay receiving 15 percent of the L.O.S.T, and East Ellijay receiving 6 percent and both cities rejected the offers. According to the Georgia Municipal Association, the last day that a county can commence negotiations for the L.O.S.T is July 1st. This meant that Monday night’s meeting was important because the County does not want to not meet the July 1st deadline.

Moments during Monday night’s meeting were at times tense as the county and the city discussed the amount of percentage they should receive because of the services they provide for the entities.

“75 percent of the L.O.S.T comes from East Ellijay,”

East Ellijay Mayor Mack West said on Monday, when explaining why East Ellijay should not be entitled to have to give up any of their percentage.

“One of the ways we are able to attract businesses to Gilmer County is that we have no property tax.” West said.

“You are correct, you do get the majority of the businesses, but we also have a very thriving downtown area that doesn’t have the same competitive incentive.”

County Post 1 Commissioner Will Beattie rebutted. Beattie would also go on to explain that the County provides services for East Ellijay that East Ellijay doesn’t have to provide such as fire protection.

Commission Chairman JC Sanford then explained that $10,000,000 of Gilmer County’s budget is mandated, but the other $5,000,000 is used to provide services such as their fire and rescue protection and 911 services.

Ellijay Mayor Hoyle would say about the County’s 911 services,

“When they call 911 in the city of Ellijay, our fire department responds, our police responds, the sheriff offices doesn’t have to respond.”

Hoyle also explained during the meeting that there are other services the city provides to the county such as city roads.

Just when it seemed like the cities and the county would not reach another agreement, East Ellijay City Planner Mack Wood, delivered one of the most humble speeches of the night.

“As a city planner I try to look at the big picture for the county, and the L.O.S.T points out that we have a unique mesh for our county. The city of Ellijay is the county seat, and has to provide for all the events of the county, Veterans Day, Fourth of July, school functions in which all our a part of. We are all attendees and we are all Gilmer Countians. East Ellijay has a concentrated business district, which we all use as Gilmer Counties, but when it came to the L.O.S.T negotiations we the cities did not get the respect of sharing as Gilmer Counties. We were just as an arm of the county government to cut as the board sees fit and not as partners, of what we really are, three separate governments.”

Board of Commission’s Post 2 Commissioner Danny Hall would respond before the meeting was over,

“I think that after listening to you guys and talking with you guys that we are asking for too much…”

>“In order for a county and East Ellijay, and Ellijay to work together, we need to work together as a whole.”

Towards the end of the meeting, Hall said that he would agree for the county to split 25 percent of the L.O.S.T if that would be alright with the other members of the board. This would mean that Ellijay would receive 16 percent of the tax and East Ellijay would share 9 percent of the tax.

Mayor Mack West of East Ellijay agreed to dropping from their current share of 10 percent only if they could renegotiate the tax in four more years. Under L.O.S.T state legislation, the county is required to renegotiate an L.O.S.T percentage every 10 years, but this doesn’t mean that the county cannot negotiate sooner.

At the end of the meeting, Board of Commissioner Chairman asked for a proposal in writing from the two cities agreeing to the new percentages. Both Ellijay and East Ellijay have said that they will have city council meetings to draw up the proposals.