The city of Alpharetta is studying a way to eliminate property taxes in the future.
It would take an act of the General Assembly to make it happen, so its prospects are uncertain. But Alpharetta is doing its homework in advance on the so-called municipal option sales tax, or MOST for short.
The sales tax rate would remain the same, so residents would not see any of their taxes increase. But the way the sales tax revenue is allocated would change.
As envisioned, the city would be allowed to opt out of a countywide one-cent sales tax, and keep all the sales tax revenue generated within the city limits.
With North Point Mall and other commercial centers, officials believe a city-based sales tax would surpass what the property tax brings in, about $16.6 million. The city has $56.5 million general fund budget.
The reason Alpharetta wants out of the county sales tax, called a special local option sales tax or SPLOST, is because all sales tax revenue is put in a county pot and distributed by population. City Councilman Doug DeRito, an advocate of a MOST for Alpharetta, said the city is 60 percent commercial but has a small population. He said that means Alpharetta is losing money.
“We’re being penalized for creating a favorable commercial climate,” DeRito said.
However, the city faces an obstacle in the Legislature. A general bill allowing cities to enact their own sales taxes has already been filed, but it requires the cities to apply the proceeds to water and sewer projects. Alpharetta’s water and sewer service is provided by Fulton County.
Currently, only Atlanta has been allowed to enact a MOST, which is dedicated to repairing and upgrading its own water and sewer systems.
Labels: Alpharetta, city of alpharetta, eliminating, Property Taxes, SPLOST
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Brian Vanderhoff @ 8:49 AM
