Wednesday, August 28, 2002
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Wednesday, August 28, 2002 |
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Tax split to cost cities? County wants to increase its share of local option tax; PTC, Tyrone would get less money under new formula By JOHN THOMPSON
Peachtree City and Tyrone stand to be the big losers under the county's proposed plan to equalize sales tax distribution. In fact, Peachtree City could lose nearly $400,000 a year under Fayette County's new proposal for dividing up sales tax dollars. The County Commission voted unanimously Thursday to call for a 50-50 split of the more than $15 million in sales tax dollars that is collected every year. Currently, the county only receives 47.5 percent of the money. "It's just a simple solution for being fair," said Commissioner A.G. VanLandingham. Every 10 years after the Census records are complete, the county and its largest municipality have to sign off on a distribution method for sales tax monies. County finance director Mark Pulliam offered a comparison of the current and proposed plans during Thursday night's meeting. Currently, the credit a resident of the unincorporated resident receives on his property tax bill is $169.14. Residents who live in the municipalities receive a much larger credit, ranging from $461.52 in Fayetteville to $637.67 in Brooks. The new plan would give unincorporated residents a bigger tax break by raising their credit to $178.04. Residents in Brooks and Fayetteville would also see a slight hike in their credits. Brooks residents credit rises to $643.27 and Fayetteville's credit rises to $482.01. But residents in Peachtree City and Tyrone would see their tax bills increased. Peachtree City's credit is estimated to drop from $517.25 to $504.82. Tyrone's credit takes the biggest hit with their credit dropping from $598.75 to $541.03. Tyrone would lose nearly $80,000 a year in tax revenues under the plan. "This is a complex law and its purpose is to give property tax relief. It's important to make sure every taxpayer gets some amount," said Commission Chairman Greg Dunn. The issue now goes to Peachtree City for discussion. County officials emphasized the figures could change if the cities decided a different measure of distribution for their 50 percent of the funds.
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