Cities and counties that get a share of sales tax collections might get more exact allocations under a proposal in the state House of Representatives.
House Bill 115 would make the Department of Revenue collect and disburse the money using all nine digits in a ZIP code.
That way, money collected in Johns Creek's portion of 30097 would get to that north Fulton County city and not Gwinnett County, as many suspect happens now.
Ditto for money from some parts of 30075 going to Cobb County, not Fulton. And so on, to the tune of millions of dollars statewide.
“It’s a huge deal,” said the bill's sponsor, Rep. Don Parsons, R-Marietta. “But we’re just making sure the money gets back to the right local government.”
The measure passed in committee last year, only to be held up in a logjam of legislation.
It remains a popular issue, though, because of the impact sales tax collections have on smaller cities.
For instance, Roswell and Sandy Springs get about $18 million and $24 million, respectively, as their share of sales tax money every year.
In both cases, that is nearly as much as the cities collect in property taxes.
Cobb leaders made the issue one of the top priorities of the county's legislative agenda this year. A better allocation of just 1 percent of the tax would equal about a $1 million increase for Cobb, the county's chief appraiser has estimated.
The measure even affects Atlanta, which shares ZIP codes with communities across Fulton and DeKalb counties, said state Rep. Ed Lindsey, who represents Buckhead.
“It’s a keep-the-trains-running-on-time, common-sense kind of bill,” Lindsey said. “It just makes sense.”
But the requirement would require retailers to install new and expensive software that some may not be able to afford, said John Heavener, president of the Georgia Retail Association. "It's a well-intended piece of legislation that has an unintended burden on the retail community," he said.
About the Author
Keep Reading
The Latest
Featured
