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Ga. communities opt to keep sales tax on energy

Published on NewsOK Modified: December 26, 2012 at 8:32 am •  Published: December 26, 2012
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"The county that imposes the tax is going to be the first to have layoffs and curtailments," Bowen said. "And they're going to be the last county to ramp up."

Of course, giving a tax break to one group can mean less money for other purposes. Troup County officials voted unanimously in October to impose a new tax to keep money that would otherwise be lost to the new tax break. County officials estimated the tax break would have cost $700,000 to $900,000 once it totally vanished, or up to 2 percent of the general budget, said Troup County CFO Scott Turk. Money generated by the tax is used to pave and resurface roads and build bridges.

The local government has already cut 30 jobs in the last year.

Crisp County has also opted to keep its share of the tax, said Commissioner Wallace Mathis, who described himself as an anti-tax Republican.

In addition to financial losses caused by the Great Recession, Mathis said his community lost money when a construction project on Interstate 75 reduced the number of travelers stopping in Cordele, driving down sales tax collections. While businesses have to pay the tax, they also get public benefits, he said. For example, local tax money has been used to extend roads and sewer lines to plants. Mathis said abruptly taking away the money would endanger the ability of local governments to pay back loans for already approved infrastructure projects.

"When you just come in and knock out a tax like that, the revenue's got to come from somewhere," he said.