The Dunwoody City Council declined to support a sales tax for infrastructure Monday, a day before the DeKalb County Board of Commissioners decides whether to put the issue on November's ballot.
Approval of the tax, which would raise money for road repaving and other projects, is in doubt because of concerns that it could have the unintended consequence of also raising property taxes. If the sales tax is approved, it could lead to the elimination of a property tax exemption that offsets increases in home values. House Bill 596 calls for the exemption to disappear when certain tax changes are approved.
“There’s too many things out there that are unknown,” said Dunwoody Mayor Denis Shortal after the council didn’t take action on the sales tax. “Until we have all the facts, the best course of action is the cautious course.”
Dunwoody’s elected leaders were considering an agreement with the county government that would have allowed the special purpose local option sales tax (SPLOST) to last six years instead of five.
DeKalb’s cities would receive $174 million out of the $551 million raised under a SPLOST during the next five years. Other cities have approved intergovernmental agreements with the county.
The property tax issue could prevent the SPLOST from passing, said DeKalb Commissioner Nancy Jester.
“I think cooler heads will prevail on this, and I don’t think that will go,” Jester told the council.
Sen. Fran Millar, R-Atlanta, said legislators didn’t intend for the SPLOST to result in a property tax increase. He said he would work to change state law next year to protect the tax exemption.
“This thing needs to be delayed until January, when the General Assembly can fix the language,” Millar said at the Dunwoody City Council meeting.
About the Author
