Gwinnett cities score a win in tax dispute

By Shane Blatt

The Atlanta Journal-Constitution

Gwinnett County's 15 municipalities have scored a victory on a critical issue in the tax-duplication impasse between the cities and the county.

Chief Judge David E. Barrett of the Enotah Judicial Circuit ruled Tuesday that the county cannot use occupational taxes, cable franchise fees, development fees, alcohol license fees and hotel-motel excise taxes as revenue to roll back taxes for county residents, in effect creating a millage rate disparity between city and county residents. The ruling was released Thursday.

The cities contended those fees should be used for countywide services such as the Sheriff’s Office and courts before levying a property tax on residents.

Such fees amount to more than $30 million, said Dave Williams, chairman of the Gwinnett Municipal Association.

"In some ways, [the decision] is pretty big," Williams, Suwanee's mayor, said Thursday. "What I hope it means is that we quickly resume negotiations and hammer out an agreement that's fair for all citizens of Gwinnett County."

The dispute centers on a state-mandated service agreement that establishes county tax rates for city residents. The Gwinnett Municipal Association has argued the county is taxing some city residents for services, such as police, they already receive through city taxes. The county believes any tax rollback is too much.

The dispute has festered for two years and has gained acrimony since the old contract expired March 1.

County attorney Karen Thomas said the ruling is just one decision.

"Clearly, we don't agree," Thomas said. "It's major litigation, and this is just one part of it. The case continues."