DeKalb loses round of lawsuit against cities

The Georgia Supreme Court dealt four cities in DeKalb County a victory Monday in their long-running lawsuit against the county over the way it shares sales tax proceeds.

The county collects the penny on the dollar Homestead Option Sales and Use Tax, or HOST, and initially agreed to give some of the money to the cities. But the cities — Decatur, Chamblee, Doraville and Stone Mountain — claimed they were owed a larger share, and sued in 2000.

The trial court ruled in their favor, but the Georgia Court of Appeals ruled against the cities, saying, in effect, that they were not entitled to any of the money. The supreme court’s decision today directs the appeals court to rethink its decision.