City faces deadline to save $100M of tax revenue

City faces deadline to save $100M of tax revenue

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The city of Atlanta faced an emergency vote on Wednesday to save $100 million in tax collections.

If governments in Atlanta and more than a dozen other counties across Georgia are unable to keep their sales tax dollars, officials say there is a good chance property taxes will go up for thousands of citizens.

Those governments use sales tax to help fund public safety. Seventeen counties in Georgia, including Fulton County, were unable to agree on how to share the Local Option Sales Tax (LOST) revenues.

Until now, governments went to arbitration to split the sales tax pie. A court recently ruled that an arbitrator can no longer be used.

Atlanta currently receives about $100 million from the fund annually. East Point nets $10.3 million, while Alpharetta gets just more than $12 million.

A letter obtained by FOX 5 directs governments to take immediate action through a formal vote that permits a legislative body from losing the LOST funds.

The Georgia Revenue Commissioner distributes that money in Atlanta, Fulton County and throughout Georgia.

Atlanta Mayor Kasim Reed told the City Council that he needed approval to make a demand in the form of a certificate. That demand must be made by 4:30 p.m. on Thursday.

The City Council took the mayor's advice and gave him the authority to seek Atlanta's portion of the proceeds.

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