Officials from Hall County and its municipalities are moving forward with an agreement to share revenues from an excise tax meant to replace money they’ll lose when a statewide tax exemption kicks in for manufacturers next year.Still, no one knows what the tax will mean for the governments’ bottom line.State lawmakers earlier this year eliminated a sales tax that manufacturers are charged on energy use. That tax will be phased out over a four-year period.The provision was part of larger changes to the tax code and was meant to make the state more attractive to manufacturers. Along with the state portion of the tax, the law eliminated the two 1 percent sales taxes local governments collect as part of the Local Option Sales Tax, which reduces reliance on property taxes, and the Special Purpose Local Option Sales Tax, which funds special voter-approved projects.It does not impact education SPLOST revenues.Local officials have recently complained about the bill’s effects on local governments’ bottom lines and its impact on their ability to attract business.Gainesville Mayor Danny Dunagan, in a meeting of local officials Tuesday, called it another one of state lawmakers’ unfunded mandates.“It’s an unfunded mandate that the cities and counties have to suffer for,” Dunagan said.To keep the law from impacting the two revenue streams, local officials have to enact a new tax by the end of the year that would help them recoup the revenue.Officials from Hall County and its municipalities agreed Tuesday to share the revenues from the new tax.
Hall, cities agree on new excise tax
Levy will replace funds lost when state killed its tax on manufacturers energy use