Divvying the Dollars: Local Option Sales Tax Distribution Negotiations in Georgia Cities and Counties
In: State and local government review, Band 45, Heft 1
Local governments in Georgia are empowered to levy a 1 percent local option sales tax (LOST), approved by referendum at the county level and is distributed to the county and qualified municipal governments (The terms city and municipality are used interchangeably throughout this article, per OCGA 36.30.1.). Distribution shares are not based on a strict formula but rather are renegotiated at certain trigger points, including the decennial census. Using a multiple regression model, this research analyzes contextual and management factors, finding the strongest predictors of increased LOST revenue share by cities to be designation as county seat, fewer fellow municipalities, and higher reliance on LOST in the city's total revenue stream. Adapted from the source document.