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December 14 Local Option Sales
Tax Vote Draws Mixed Reactions
Tuesday afternoon's
joint "discussion" of the
proposed local option sales
tax at City Hall between
the County Commission
and City Council drew
mixed reactions from
citizens present, as well as
from elected officials.
County Commission
Chairman V.W. McEver
began the discussion by
briefly stating facts
leading up to the recent
decision by the Com
mission to call the
referendum scheduled
next Tuesday. He said the
General Assembly passed
the bill enabling
referendums Into law a
year ago.
McEver continued, "We
(the Commission) con
sidered introducing it
then, but did not. Since
that time we have seen
other people pass it and
seen the estimated results
of Its collection." (Peach
and Bibb Counties have
passed the tax, and Dooly
and Crisp Counties are
holding reterendum votes
also on Tuesday December
14.)
McEver added, "We
called for the referendum
to enable a broader base of
taxation in this county. The
earliest call for collection
would be April 1, 1977. It
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Perry Mayor James McKinley (R) and the
Houston County Commissioners met Tuesday
afternoon with the City Council and interested
citizens in a public discussion of the proposed one
percent local option sales tax. The proposal will be
Commission Disagrees
McKinley Chart Says
Sales Tax Misleading
Perry Mayor James
McKinley Tuesday af
ternoon unveiled a chart
that he said shows that
anyone making under
$70,000 a year or with
property will pay more one
percent sales tax than will
be saved by property tax
reduction. Later he In
dicated his opposition to
the tax (see another HHJ
article). But the Houston
County Commission
disputed the Mayor's
figures, saying fhey are
unrealistic.
What The Chart Says
Mayor McKinley said he
Instructed city staffers to
prepare a chart showing
tax reduction savings
versus money spent on
sales taxes. He em
phasized that he did not tell
them to bias the chart In
any way.
The chart shows basic
yearly salary, beginning at
SIO,OOO, in ten thousand
dollar increments op
through SIOO,OOO a year. On
the same column, In
graduated increments, are
will be collected exactly as
is the present three per
cent state sales tax."
"In Houston County
there would be created
tour districts- the cities of
Perry, Warner Robins,
Centerville; and the
unincorporated areas of
the county. The total
revenue collected by the
one percent tax would be
divided four ways by the
state Revenue Com
missioner. It would be sent
down to each district ac
cording to the 1970 census
population figures."
McEver continued, "We
would have a year to
collect money. Then in 1970
all governments would
have to roll back property
taxes In an amount equal
to the revenues received
from the local option tax.
The county after 1978
would have to continue to
roll back its taxes. The
cities would not have to
continue the rollback."
(Editor's note: The
county commission voted
last week to estimate 1977
collections and rollback
the July 1977 property tax
es within the "special"
district consisting of the
unincorporated areas.
There is nothing in the law
that would prevent any of
the four governments from
100 percent valuations of
homes. For instance under
theslo,ooo figure is lisfed a
$15,000 home.
The chars then shows the
taxes based on the city's
present millage 13 mills
that would normally be
paid. For instance, a
$15,000 home would carry
$78.00 In ad valorem taxes.
A $25,000 home would
carry $l3O in ad valorem
taxes.
The chart predicts a 6.5
mill reduction in ad
valorem taxes through
monies received from
collecfion of the one per
cent sales tax. (Official
1976 estimates say Perry
will receive about $227,000
a year from the local op
tion sales tax.) Based on
the 6.5 mill reduction, the
taxes on a $15,000 home
would be cut in half, to $39
a year.
Both the Mayor and
County Commission agree
so far. But the chars says
that a person making
SIO,OOO a year will spend
sixty percent of Income,
Pro And Con Attitudes Expressed
raising property tax
millage, then cutting it by
the amount received in
sales taxes. The com
missioners say however
that common sense and a
desire to stay in office will
keep this possibility from
taking place.
The 1976 estimates of
sales In Houston County,
according to the County
Government Magazine,
Two No, Three Yes
Council Divided Over
Sales Tax Questions
In a poll taken by the
Home Journal Tuesday
evening, two members of
the Council said they will
vote against the one
percent local option sales
tax. Three said they will
vote for the tax, one was
undecided, and another
was not available for
comment.
Following an hour long
meeting with the Houston
County Commission
Tuesday afternoon, Perry
voted upon by county ballot next Tuesday,
December 14. Left to right are: Commissioner
Steve Byrd, Commissioner Alton Tucker, Com
missioner V.W. McEver, Commissioner Frank
Rozar, and Mayor McKinley.
after income taxes are
deducted from gross
income, on items that
carry sales tax. The
Commission says sixty
percent is too high.
If the chart's figures are
accurate, and whether
they are or not will depend
on individual cases, a
person making SIO,OOO a
year will spend $4,500 on
sales taxed items, and so
pay $45 a year in sales tax.
Adding $45 to the $39 in
property taxes produces a
total tax of SB4, or six
dollars more than would
have been paid in city ad
valorem tax if no sales tax
were implemented.
McKinley gave the
figures on the chart as one
reason he has changed his
mind and will now vote
against the local option
tax.
Councilwoman Barbara
Calhoun, on the other
hand, puts the problem a
little moresimply.She says
a person with a $25,000
home will normally pay
$l3O in ad valorem taxes
published in Atlanta, has
made projections of
revenue from the sales tax
to each city and the county.
The projection says
Perry will re
ceive $227,000; Warner
Robins $982,000; Cen
terville $50,600; and
Houston County- $584,000.
Councilman Gene Smith
of Perry observed that the
same sales that are
Mayor James McKinley
said he plans to vote
against the tax. He ad
ded," I encourage all my
friends to vote against it.
The burden will be on the
smaller property owners,
in view of a chart recently
completed by our staff (see
another HHJ article). This
shed a completely new
light on it to me. I just
don't think it as great as it
is presented. This is just
my personal opinion.
(at 13 mills) in the city.
Half of that would produce
a tax savings of $65.00.
Mrs. Calhoun says no one
will spend $6,500 on items
that carry a sales tax.
(The Home Journal
makes no editorial com
ment on either stand.
Obviously, whether or not
an individual taxpayer will
save when comparing ad
valorem tax reduction
against money spent on
sales taxed items depends
upon individual cir
cumstances. We enourage
all citizens to carefully
consider their own cases.)
A person can compute
his own case, whether or
not the chart is correct, by
dividing his present ad
valorem tax in half, if
residing in the city. Then
figure out how much would
be spent upon items that
carry sales tax.
Remember, house
payments and insurance
are examples of items that
carry no sales tax. Then
compare the two figures.
exempt from the three
percent state sales tax will
also be exempt from the
added one percent. This
includes medicine and
farm equipment, as well
as selected other
items.
Barbara Calhoun wanted
to know how often the four
governments' populations
would be updated and the
commissioners said they
Everyone else is entitled to
theirs.”
Wednesday morning
called the
Home Journal to add to his
comments of Tuesday
evening. He said, "The
commissioners say it will
be a broadening of the tax
base, in reality it will be a
transfer of taxes from the
large property owner to
the small property owner
living on a fixed income. It
is more a "re aligning” of
taxes.”
He added, "I think that
no new tax will eliminate a
tax but in the long run
raise taxes. The more I
study it, the more I am
against the idea."
Continuing, the Mayor
stated, It is apparent that
forty five percent of ad
valorem taxes are
collected in the southern
half of Houston County.
Yet 85 percent of retail
sales are said to be in
Warner Robins. This would
be changing the burden
and putting it on shop
pers."
He concluded, "Many
persons from Perry and
even Fort Valley presently
shop at the Houston Mall in
Warner Robins, as well as
the people in Warner
Robins. It is my thinking
they may shop in the
Macon Mall- where there is
no sales tax because it is
outside the Macon city
limits."
Councilman Draper
Watson agreed with
McKinley when asked
Tuesday night. He
elaborated, "I'm voting
against the tax. I think it
paints a beautiful picture,
but I think it is just another
form of taxation. It would
help only the large
property owners."
Barbara Calhoun, Mayor
Pro Tern, disagreed and
said she plans to vote for
the one percent sales tax.
She stated, "My opinion is
based upon the fact money
will be distributed to four
funds based on the 1970
census. It is also based on
the obligation of the county
commission for more than
just one year. I was op
posed to it at first. But I
feel it is a broadening of
the tax base, and I think
we'll be missing the boat if
we don't do it."
Councilman Ralph
Gentry agreed, saying, "1
think I'm going to be for it.
It will reduce property
taxes. There is a built-in
increase if inflation con
tinues. It can always be
rescinded if it doesn't work
out. It will broaden the tax
base."
Councilman Jerome
Bloodworth stated, "At the
present time I'm in favor
of it. It will broaden the tax
base. I believe it will
behoove the city to en
courage its passage. I hope
all elected officials will try
to relieve the burden on the
ad -valorem taxpayer by
this method."
Councilman Gene Smith
was not available for
comment.
assumed that
every time a census is
taken (every ten years)
the percentage shares will
be altered to conform.
Perry resident Aldene
Lasseter suggested the
local option sales tax is in
reality only another way to
get additional tax
revenues. The Com
missioners disagreed and
said they are not trying to
raise additional tax, but
rather to broaden the base
from whence the present
sums come.
McEver said it should be
noted that Houston County
is gaining a reputation as a
"trade area" with persons
from other counties
coming to Perry and
Warner Robins to shop. He
said these people will help
pay the tax burden through
their sales tax.
Mayor James McKinley
was asked for his opinion
by the Commissioners and
the answer evidently was a
surprise. Several months
ago McKinley said he
supported the idea, with
reservations. Tuesday he
introduced a chart (see
another HHJ article) that
he said helped change his
mind.
In addition to those
comments he said he is
concerned because there
are no "safeguards" as far
as municipalities are
concerned. The city can
presently levy up to 20
mills, and is levying 13
mills. (This is down a mill
from the 14 mill levy of
several years ago.)
McKinley said he thinks
the General Assembly
should have added a
provision in the law to
require municipalities to
First Place Float Winner - Girl Scout Troop 225
Second Place Winner - Tsungani Club
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Third Place Winner - Perry Business Women *
HOUSTON HOME JOURNAL THURS., DEC. 9, 197*,
lower their maximum
possible millage
corresponding with the
amount of income from the
one percent sales tax.
Councilman Gene Smith
said that a family of four
living next to a family of
two in similarly valued
houses will have their
property taxes cut equally.
He added that the larger
family will spend mye on
sales taxed items.
One area that drew
several minutes of
discussion was the dif
ference in rollbacks for
county versus city
property. The county
commissioners will
rollback taxes ONLY on
property outside the three
municipalities. The city
properties will have
rollbacks made by the city
governments. A city
property WILL NOT
receive a rollback from
both city and county.
The board of com
missioners noted that if the
referendum fails coun
tywide, after 90 days it can
be introduced by cities
separately. If this hap
pens, only the city that
introduces it will collect.
There are rumors of an
"underground” movement
in Warner Robins to tell
voters to vote "no" on the
countywide ballot then
impose it only in that city.
No substantiation was
found, however, Os the
rumor.
A speculative reason for
the supposed "un
deground" movement is
that Warner Robins
merchants feel they will
collect about 85 percent of
all sales tax revenue, but
receive only 55-60 percent.
PAGE 2-A
This idea has never been
proved or disproved.
Another question raised
was how can the tax be
stopped, if experience
shows it saves no "real"
money for taxpayers. The
tax law states in sub
section (h) "Any political
subdivision levying the tax
authorized by this sectior.||
may cease to impose said
tax effective on the first
day of the second calendar
quarter following the
adoption of a resolution
evidencing its intent to
discontinue levying such
tax..."
Aldene Lasseter spoke
up again to say that a large
part of his total tax paid on
his property is county ad
valorem tax. "I'll be
getting no relief from the
county on that. I can't vote
for it. My tax bill has in-a
creased every year." T
Curtis Fountain agreed
with Lasseter. Fountain
stated, "As I see it now, if
you own land in the county,
you will get a better deal
than I will owning land
inside a city. Why not put
the tax reduction on county
property taxes only, on a
countywide basis?"
The commissioners
replied that the law
specifically states how the
taxes are to be levied,
collected, and returned t<JA
local governments.
The discussion continued
for several moments,
repeating ideas already
expressed. The com
missioners stated in
dividually that they feel
the sales tax will help the
ad valorem tax payer
(property owners) by
insuring that everyone will
pay a share.