Chatham County’s challenge to a state statute governing sales tax negotiations has been denied.
Robert Adamson, senior judge of the Superior Court, ruled Thursday against the county’s claim that the “baseball arbitration” provision was unconstitutional.
The provision calls for a judge to select one of the proposals for how local option sales tax revenue should be distributed when the parties can not come to an agreement during the negotiating period.
The challenge was filed by the county as part of the court case between Chatham and Savannah regarding how an estimated $630 million should be split between them and the municipalities for the next 10 years.
County Attorney Jon Hart argued the provision violates the separation of powers of the three branches of government by ceding control of an essential legislative function to the courts. Savannah and the seven smaller municipalities responded that the challenge had no merit and jeopardized the rights of citizens to benefit from the tax proceeds.
The Georgia Supreme Court recently agreed to hear a similar challenge by Turner County, which was involved in its own sales tax dispute with the city of Ashburn. Turner County filed the appeal after the Superior Court judge hearing the case ruled against the motion to declare the provision unconstitutional.
Savannah and the county have been deeply divided on how the funds should be distributed since beginning negotiations in June. City officials claim the county’s proposal would cut Savannah’s share by about $120 million over the 10-year tax period. County officials argued that the services Chatham provides throughout the county have not been taken into account and asked for an increase of about $82 million.
Adamson is scheduled to hear the case on Monday.
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Judge denies Chatham's tax law challenge
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