Time to settle tax fight, judge tells Gwinnett, cities

The judge overseeing Gwinnett County’s embattled service agreement mediation said Monday he expects county and city representatives to inform him this week how they plan to proceed.

Chief Judge David E. Barrett, of the Enotah Judicial Circuit, said he has proposed two options to get Gwinnett County and its 15 cities to iron out an agreement detailing how much city residents pay in county taxes and to what services they are entitled.

The dispute has festered for two years and has gained acrimony since the old contract expired March 1. Since then, both sides have been placed on the state’s “unqualified” list, making them ineligible for state grants. Barrett has since lifted those sanctions.

But the judge said he wants action soon or the county will “face the consequences.”

Barrett wants both sides to decide whether they want him to rule on the legality of certain proposals in dispute or end the discussions and make all the decisions himself.

Mike Comer, Gwinnett County deputy administrator, said the impasse centers around money — about $50 million.

Unincorporated residents, he said, pay certain fees, such as insurance premium taxes, liquor licenses and business permits, to the county that help cover the cost of services. City residents, he said, pay the same fees, but they go into city coffers.

Because of this, the county argues, city residents must make up the difference through a higher county property tax rate.

“It’s not a lot of money,” Comer said, “but apparently it’s enough to fuss about.”

The cities, through attorney Buddy Welch, say they will request the judge decide certain constitutional and legal issues. They contend the law specifies what funds the county must use to pay for services provided to unincorporated areas. They say fees and taxes from alcohol sales, occupational tax, franchise fees, and taxes from financial institutions should be used for countywide services such as the sheriff’s office and courts before levying a property tax on residents.

Welch also said that the people residing in the cities are also residents of Gwinnett County and should be taxed equally.