A judge will decide how to distribute $8.4 million
Effingham County is asking for the sales tax distribution to remain the same as it has been for the last 10 years.
That’s according to County Attorney Eric Gotwalt.
Rincon and Guyton are asking for a slightly larger share of the 1-cent-per-dollar local-option sales tax (LOST), as is Springfield.
The deadline for best and final offers was 5 p.m. today in Effingham County Superior Court.
Distribution of the tax is renegotiated every decade, based on Census data. The debate is an important one, determining the fate of about $8.4 million a year countywide.
How much people pay in property taxes could be affected by the way the money is distributed.
Gotwalt said the county’s offer asks for the distribution to remain the same as it is currently:
Effingham County 77.50 percent; Rincon 13.84 percent; Springfield 5.76 percent; and Guyton 2.90 percent.
Rincon and Guyton worked together to come up with these numbers: Effingham County 76 percent; Rincon, 15.16 percent; Springfield, 5.82 percent; and Guyton 3.02 percent.
That’s for 2013. Their proposal calls for the percentages for the cities to increase in stages over the 10-year life of the sales tax.
In 2014, they call for: Effingham County 74 percent; Rincon 16.83 percent; Springfield, 6.05 percent; and Guyton, 3.12 percent.
In 2015, the numbers would change to: Effingham County, 72 percent; Rincon, 18.5 percent; Springfield, 6.27 percent; and Guyton, 3.23 percent.
In 2017 and through the end of the sales tax, in 2022, the Rincon and Guyton proposal calls for: Effingham County, 71 percent; Rincon, 19.16 percent; Springfield, 6.60 percent and Guyton 3.24 percent.
Springfield’s proposal is for: Effingham County, 75.84 percent; Rincon 13.84 percent; Springfield, 7.42 percent; and Guyton, 2.90 percent.
Rincon has argued that it has most of the retail business and should get a larger share of the tax. Springfield has said it hasn’t been getting enough to compensate for having so much property that doesn’t pay taxes, such as county buildings, schools and the hospital.
The county argued that it really should receive all of the LOST money because service delivery agreements compensate the cities for the services that they provide.
The sales tax is meant to provide property tax relief.
The governments couldn't agree how to distribute the money, after six months of debate that included work with a mediator. The question then headed to court.
Senior Superior Court Judge Albert Rahn III will choose one of the three offers, in “baseball mediation” that is called for by state law.
Deadlines have been pushed back repeatedly in the case. A timetable filed with the clerk of court’s office hasn't been updated.
Originally, Rahn said a trial in the matter would be held March 28 and 29 and that he would rule by April 30. He hasn't indicated, in court filings, if he'll stick to those dates.
See effinghamnow.com next week for more about the arguments the municipalities are using to back up their requests.