Politics & Government

Alpharetta Wants Sales Tax Revenue Distributed by Population

North Fulton mayors support plan that would cut into Fulton's share as unincorporated parts of county have shrunk.

North Fulton's mayors want the county Local Option Sales Tax (LOST) to be divvied up by population, with each city's share determined by its population. Fulton County's share would be determined by the population of the unincorporated part of the county in this plan.

"The real change between this and past distributions is it gives the county its portion by the percent of unincorporated citizens, which has never been done before," said Alpharetta City Administrator Bob Regus.

The percentage of sales tax dollars the county would get should decrease whether this new formula is used or the existing formula, Regus told Alpharetta City Council on July 11. Any determination of the distribution will involve population counts. The 2010 Census figures show a dramatic increase for existing cities such as Alpharetta, which has approximately 58,000 residents, and should include an increase in tax revenue. But it also includes new cities, including Milton, Johns Creek and Sandy Springs. New cities mean the county has less unincorporated land and a smaller population count, which cuts into the county's share of the sales tax dollars.

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"I think it's the fairest way to go based on population," Regus said.

However, no change can happen until the chairman of the Fulton Board of Commissioners starts negotiations, which is required by July 1, 2012. The current distribution agreement ends in December 2012.

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"It's the mayor's wish for North Fulton to support this particular distribution," Regus said.

Most city councils in North Fulton will have a resolution in support of this method on their agendas this month, he said.

"But we need to start these negotiations right now," said Mayor Arthur Letchas.

An economic development study for the city showed retail sales for Alpharetta were approximately $1.4 billion, said Councilman Mike Kennedy.

Alpharetta Finance Director Tom Harris said with the Census figures and retail sales estimates, Alpharetta would receive approximately $13.6 million in LOST revenue with the new distribution method.

"Fulton County may not agree with this, but this is the way we're starting this negotiation," Letchas said.


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