FULTON COUNTY, Ga. — A battle over millions of sales tax dollars is under way in Fulton County.
Every time a cash register rings, a portion of the proceeds goes into a fund called the Local Option Sales Tax (LOST).
"If you didn't have local option sales tax you'd be forced to cut services or raise property taxes," said Paul Radford, deputy director of the Georgia Municipal Association.
Radford told Channel 2's Mike Petchenik in Fulton County nearly $220 million is collected annually, then divided up between the county and its 14 cities. State law requires all sides to renegotiate the terms of their agreement every 10 years.
"Everyone is going to go in and justify why they need to stay the same or need more," said Radford, who's advising the cities to come in prepared.
"We try to encourage them to not have a scorched earth policy, not to burn bridges, because in the end after they go through this process, they still have to have good relationship with their fellow cities and the county in delivering services," said Radford.
Currently, the city of Atlanta receives the lion's share of the money at about $8.9 million a month. Fulton County government receives about $3 million a month, and Sandy Springs a little more than a $1 million. Radford said with the addition of several new cities since the last renegotiation, the playing field could change because negotiators must consider population, where sales taxes are generated, and the number of services a government provides to its residents, when they decide how to allocate the money.
"Those cities have all assumed a substantial service responsibility," he said. "So they may argue their share ought to reflect that other than just their population."
Radford said counties across the state often resort to what he calls "fuzzy math," in trying to include the population of the entire county, not just the unincorporated section, to help bolster their causes.
Fulton County Commission Chairman John Eaves said county services do benefit all citizens, regardless of whether they live in a city.
"I'm looking for something that's fair and equitable and win-win for the county as well as the cities," he said of the negotiation process. "I think we can find a win-win."
State law requires negotiators to reach an agreement by Sept. 1. If that doesn't happen, an arbitrator could be brought in to mediate an agreement. If that fails, Radford said a superior court judge outside of the county would make a final decision.