Discussions have begun between the administrations of Gilmer County, Ellijay and East Ellijay about the division of the Local Option Sales Tax.
Mayors for both cities are looking for a 1 percent increase to their share of the sales tax. They say the percentage was given to the county in the last negotiation almost a decade ago to help Gilmer County through the economic downturn the county was experiencing.
“That’s where I am at,” said Ellijay Mayor Al Hoyle. “If I could just get us the 1 percent back that we lost last time, 10 years ago.”
Established in 1975 and amended in 1976, LOST is a 1 percent sales tax which is divided between the county and the two cities.
Since the last LOST negotiation almost a decade ago, Gilmer County has been receiving 75 percent, Ellijay 16 percent and East Ellijay 9 percent.
In 2021, this split of the sales tax equaled $5,296,667 for the county, $1,129,981 for Ellijay and $635,620 for East Ellijay.
One percent of the sales tax would equal roughly $70,000, which would mean a $140,000 drop for the county. This is if the sales tax holds steady next year.
In the past three years, sales tax has grown each year.
“The economy has turned,” Hoyle said.
East Ellijay City Planner Mack Wood said the county might not lose $140,000 from giving the two percent back to the towns based on current growth and some additions to the town on the horizon.
He said East Ellijay is looking at growth from Talona Ridge RV Resort, Georgia Mountain Health building a $4.5 million facility, an $8 million Marriott plus three restaurants. Aldi’s is also looking at possibly locating a grocery store in the area.
“The money is just going to boom from just the sales tax,” he said. “The money is going to be there.”
He said it was only fair the cities go back to what they were before the last negotiation.
Gilmer County Chair Charlie Paris was not able to attend the meeting due to illness.
The three entities have until the end of the year to finalize the percentages.