Cities to receive more revenue

Catoosa County, Ringgold, Fort Oglethorpe agree to new split on sales tax proceeds

Catoosa County, Ringgold and Fort Oglethorpe had until Dec. 30 to resolve their dispute over the distribution of Local Option Sales Tax (LOST) revenue. With the aid of mediators, they came to an agreement and signed the paperwork on Dec. 27.

The one-percent Local Option Sales Tax was implemented by the Georgia Legislature in 1975 as a plan to keep property taxes in check. Every ten years, after the U.S. Census, counties and the cities within them must renegotiate how the taxes will be divided among them.

A major consideration for distribution purposes is population, which is why negotiations are held shortly after a census. According to Census data, since the 2010 Census, Catoosa County has gained around 3,800 residents, Ringgold has lost around 265 and Fort Oglethorpe has gained nearly 1,200.

CURRENT POPULATION ESTIMATES, BASED ON THE 2020 CENSUS 67,872 3,414

Catoosa County: Ringgold:

Fort Oglethorpe: 10,423 The county, said District 2 Catoosa Commissioner and vice chairman Chuck Harris in an interview, pays for around 79% of services, including emergency services (fire protection, 911, ambulance services), roads, senior services, Trans-aid, library services, courts, jail and more.

The cities argued that most businesses are located within city limits, which entitles the cities to a higher percentage of sales taxes than the county proposed.

The first five hours of negotiations on the 27th, said Harris, “resulted in very little movement.” Bargaining dragged on for another five or six hours. At stake was millions of dollars. Last year, Harris said, the amount collected in LOST taxes was $12 million. Over the course of 10 years, LOST generates over $100 million for the county and cities and accounts for significant portions of their budgets.

In the end, all parties came

to an agreement they signed and turned in to the state on Dec. 29.

THE FINAL BREAKDOWN

2023: Catoosa, 70%; Ringgold, 9.01%; Fort Oglethorpe, 20.99%

2024: Catoosa, 69%; Ringgold, 9.31%; Fort Oglethorpe, 21.69%

2025: Catoosa, 68%; Ringgold, 9.61%; Fort Oglethorpe, 22.39%

2026: Catoosa, 67%; Ringgold, 9.91%; Fort Oglethorpe, 23.09%

2027: Catoosa, 66%; Ringgold, 10.21%; Fort Oglethorpe, 23.79%

2028: Catoosa, 65%; Ringgold, 10.51%; Fort Oglethorpe, 24.49%

2029: Catoosa, 65%; Ringgold, 10.51%; Fort Oglethorpe, 24.49%

2030: Catoosa, 64%; Ringgold, 10.81%; Fort Oglethorpe, 25.19%

2031: Catoosa, 63%; Ringgold, 11.11%; Fort Oglethorpe, 25.89%

2032: Catoosa, 62%; Ringgold, 11.41%; Fort Oglethorpe, 26.59%