Chatham County’s proposal that the county government receives half of Local Option Sales Tax (LOST) funds would have major repercussions on a majority of property taxpayers for the next decade. It would be a significant change to the current LOST share breakdown – 23% for the county and 77% for the eight incorporated municipalities.
While the county touts that nearly doubling their share would lead to an overall decrease in county property taxes, data suggests otherwise. That’s because the county suggested that the City of Savannah cut their LOST share, while other municipalities remain the same.
However, typical LOST distributions align more closely with each city’s population share. In a pro-rata scenario, a 50/50 split would force municipalities to make large hikes in their millage rate, meaning hundreds more on municipal residents' annual tax bills. Bloomingdale and Vernonburg residents would likely see their first-ever municipal property tax.
Only taxpayers in the unincorporated area (a population of about 90,000) and Port Wentworth (a population of about 11,000) would experience a net property tax benefit from a 50/50.
Meanwhile, the municipalities' proposal calls for the county to receive 9% less under the new agreement than they do under the current one, which would have a less significant tax impact on the overwhelming majority of county residents.
LOST revenue, generated from a 1% sales tax levied on most goods and services within Chatham County, is disbursed into municipal and county general funds, offsetting the amount of property tax people have to pay. Essentially, it’s a balancing act between the two parties, who have to share nearly $100 million in annual revenue.
Smaller municipalities that rely on LOST funds as a larger portion of their annual budget will see major tax bill increases for their residents if that revenue is cut.
Here’s what the millage impact of Chatham County’s proposed 50/50 split would look like for each municipality and the unincorporated area:
Chatham County
Total county population: 289,649
Unincorporated area population: 86,392
2021 LOST revenue based on current certificate: $22,423,098
Projected LOST Revenue with 50/50 split: $48,745,865
Difference: $26,322,767
2021 Millage Rate: 11.543
Projected New Millage Rate: 9.77
Percentage increase/decrease: -15.36%
Savannah
Population: 147,780
2021 LOST revenue based on current certificate: $55,570,286
Projected LOST Revenue with 50/50 split: $35,438,244
Difference: -$20,132,042
2021 Millage Rate: 12.739
Projected New Millage Rate: 15.815
Percentage increase/decrease: 24.15%
Pooler
Population: 25,711
2021 LOST revenue based on current certificate: $8,618,269
Projected LOST Revenue with 50/50 split: $6,161,477
Difference: -$2,456,792
2021 Millage Rate: 4.597
Projected New Millage Rate: 6.089
Percentage increase: 32.46%
Port Wentworth
Population: 10,878
2021 LOST revenue based on current certificate: $2,408,046
Projected LOST Revenue with 50/50 split: $2,612,778
Difference: $204,733
2021 Millage Rate: 4.160
Projected New Millage Rate: 3.740
Percentage decrease: -10.10%
*Port Wentworth experienced exponential growth over the last decade, a more than doubling of its population.
Garden City
Population: 10,289
2021 LOST revenue based on current certificate: $4,192,144
Projected LOST Revenue with 50/50 split: $2,466,541
Difference: -$1,725,604
2021 Millage Rate: 3.489
Projected New Millage Rate: 6.913
Percentage increase: 98.13%
Tybee Island
Population: 3,114
2021 LOST revenue based on current certificate: $1,686,607
Projected LOST Revenue with 50/50 split: $750,686
Difference: -$935,921
2021 Millage Rate: 3.931
Projected New Millage Rate: 5.700
Percentage increase: 44.99%
Thunderbolt
Population: 2,556
2021 LOST revenue based on current certificate: $1,199,148
Projected LOST Revenue with 50/50 split: $614,198
Difference: -$584,950
2021 Millage Rate: 6.132
Projected New Millage Rate: 11.463
Percentage increase: 86.94%
Bloomingdale
Population: 2,790
2021 LOST revenue based on current certificate: $1,325,888
Projected LOST Revenue with 50/50 split: $672,693
Difference: -$653,195
2021 Millage Rate: 0.000
Projected New Millage Rate: 4.688
Percentage increase: new tax
Vernonburg
Population: 139
2021 LOST revenue based on current certificate: $68,244
Projected LOST Revenue with 50/50 split: $29,248
Difference: -$38,997
2021 Millage Rate: 0.000
Projected New Millage Rate: 2.019
Percentage increase: new tax
Nancy Guan is the general assignment reporter covering Chatham County municipalities. Reach her at nguan@gannett.com or on Twitter @nancyguann.
This article originally appeared on Savannah Morning News: Here's how property taxpayers could be affected with proposed sales tax distribution
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