New tax formula would cost Atlanta, Fulton millions | www.myajc.com

9
Sep

New tax formula would cost Atlanta, Fulton millions | www.myajc.com

Fulton County and 12 of its 14 cities have agreed to a formula that will determine how billions of dollars in local sales tax revenue gets returned to taxpayers over the next decade.

The big loser — Atlanta, which wasn’t part of the agreement that would give the city about $5.8 million less per year than what it receives under the current formula.

The loss is “not just a drop in the bucket since our revenues have been declining,” said Atlanta District 9 Councilwoman Felicia Moore, the chairwoman of the City Council’s finance committee. “That’s another hit we’ll have to absorb.”

Among the winners — north Fulton cities that will see more money for funding services while helping keep property taxes down. Milton would get almost $4 million more per year. Alpharetta would bring in an additional $1.4 million per year.

Atlanta would still receive the largest amount under the new formula, although its share would drop from about $102 million to $96 million.

Because the 12 cities form a majority of the county’s population, and Atlanta doesn’t, the deal they struck with the County Commission will likely become the final plan for divvying up roughly $240 million per year in money from the 1-cent local option sales tax, or LOST. The agreement, which likely won’t take effect until the beginning of 2014, brings an end to more than a year of tense, fractured negotiations between multiple governments sharply divided by politics, demographics and geography.

via New tax formula would cost Atlanta, Fulton millions | www.myajc.com.

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